SABIC and Sinopec support Saudi Vision 2030 and China’s One Belt, One Road initiative by signing a strategic cooperation agreement

(Beijing) – Under the patronage of King Salman bin Abdulaziz Al-Saud, Custodian of the Two Holy Mosques, and President Xi Jinping, President of China, SABIC and Sinopec signed a strategic agreement on March 16 to study opportunities for joint projects in Saudi Arabia and China. The agreement supports the efforts of the two countries to achieve further cooperation.

The agreement, was signed by Prince Saud bin Abdullah bin Thenayan Al-Saud, President of the Royal Commission for Jubail and Yanbu and Chairman of SABIC, and Wang Yupu, Chairman of Sinopec, supports Saudi Vision 2030 and China’s Silk Road Economic Belt initiative.

Under the agreement, the largest Saudi and Chinese petrochemical companies are planning – for the first time – to study a joint venture with Chinese investment in Saudi Arabia. The agreement also seeks to explore opportunities for further investments at the existing joint venture SINOPEC SABIC Tianjin Petrochemical Company (SSTPC) that will contribute to industrial development in the two countries, allowing them to manufacture more high-quality products and open the way for expanding integrated cooperation that supports long-term development plans.

Prince Saud said: “We are honored by the esteemed patronage to the agreement signing ceremony. This agreement is among the most important agreements signed during the Custodian of the Two Holy Mosques, King Salman’s visit to the People's Republic of China. It will help align and integrate the Saudi Vision 2030 and China’s One Belt One Road initiative, opening up new prospects for wide cooperation between SABIC and Sinopec. The future will witness cooperation to achieve the visions of both countries’ leadership.”

Yousef Al-Benyan, SABIC’s Vice Chairman and CEO, expressed his satisfaction with the agreement, which will result in deepening the relationship with China and Sinopec.

Al-Benyan said: “This is an opportunity for both parties to build on their historic cooperation. The Chinese market has always been a key pillar of our sales over the last 30 years. Today, we are entering a turning point in our strategic relationship and building on previous successes, such as studying the establishment of a coal-to-chemicals petrochemical complex with China’s Shenhua Ningxia Coal Industry Group. We hope these successes continue through strategic projects that contribute to the Saudi and Chinese leaders’ plans and meet the aspiration of their peoples.”

The agreement studies joint venture petrochemical projects in China and Saudi Arabia, which target downstream key markets, such as automotive, electronics, lighting, and building and construction, packaging, and medical equipment. The agreement covers strategic projects that allow SABIC to continue its historic participation in China’s growth and serve global growth as a whole. The agreement is a boost to SABIC's efforts to achieve its 2025 strategy in line with Saudi 2030 goals.

ENDS
Hisham Al-Joher
Director, Global Media and Internal Communications