SABIC AND RONGSHENG PETROCHEMICAL SIGN PROJECT DEVELOPMENT AGREEMENT FOR POTENTIAL STRATEGIC INVESTMENT IN ADVANCED MATERIALS PROJECT IN CHINA

The Saudi Basic Industries Corporation (SABIC) today announced the signing of a Project Development Agreement (PDA) with Rongsheng Petrochemical Co. Ltd. (Rongsheng Petrochemical) and its wholly owned subsidiary Rongsheng New Materials (Zhoushan) Co. Ltd. to jointly advance the development of the Jintang New Materials Project in Zhoushan, Zhejiang Province, China.

Under the PDA, SABIC and Rongsheng Petrochemical are evaluating a potential equity investment by SABIC up to 50% of Rongsheng New Materials, positioning the project as a strategic collaboration between two leading global petrochemical companies. The agreement also establishes a framework for project development activities towards a potential final investment decision (FID).

Dr. Faisal M. Alfaqeer, SABIC CEO and Executive Board Member, stated: “This partnership with Rongsheng Petrochemical reflects SABIC’s vision for growth and global footprint expansion through strategic, collaborative approach. SABIC continues to prioritize innovation, portfolio advancement and sustainable value creation, strengthening its ability to serve customers worldwide. We look forward to working closely with Rongsheng Petrochemical to evaluate and advance this opportunity, combining our respective strengths, capabilities and expertise.”

Mr. Xiang Jiongjiong, CEO of Rongsheng Petrochemical and Executive Director of the Board, said: “The collaboration represents a landmark partnership and a model of win-win cooperation between Rongsheng Petrochemical and SABIC. This partnership is a flagship outcome of two industry leaders complementing their strengths and robust capabilities to jointly research, develop and operate in advanced chemical materials. Against the backdrop of today's complex market conditions, our alliance also serves as a critical stabilizing anchor for the chemical sector, enabling us to deliver more valuable and comprehensive product solutions to our customers.”

The Jintang New Materials Project is designed to enhance production capabilities for advanced chemical materials and support growing demand from key downstream industries in China and Asia. The project is expected to leverage world-class technologies, integrated manufacturing capabilities and operational excellence to strengthen competitiveness, foster innovation and create long-term value for all stakeholders.