SABIC, Sinopec sign MOU to set up new 260,000 tonnes/year PC plant in China, slated to start up by 2015

RIYADH, Saudi Arabia , May 17, 2011 (press release) – Saudi Basic Industries Corporation (SABIC) and China Petroleum & Chemical Corporation (Sinopec Corp.) today announced a memorandum of understanding (MOU) to collaborate on polycarbonate production in China.

This new agreement will add to SABIC’s joint-venture with Sinopec, SSTPC (Sinopec SABIC Tianjin Petrochemical Company). A joint investment between both companies will fund a new polycarbonate production plant with an annual capacity for 260 kilo metric tonnes.

Fully operational since 2010, Tianjin-based SSTPC (a 50:50 JV and established in October, 2009) produces various petrochemical products, including Ethylene, Polyethylene, Ethylene Glycol, Polypropylene, Butadiene, Phenol and Butene-1, among others.

The new polycarbonate production plant will be located in SSTPC and is expected to be operational by 2015. It will leverage SABIC’s world-class advanced polycarbonate technology using phosgene and Dichloromethane free process. The performance properties of purity, transparency and continuous process will bring local PC resin capabilities to a diverse customer base in China.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, said: “This new and exciting milestone is a strong endorsement of our partnership with Sinopec. Today’s announcement will strategically position both companies as world-class producers of essential petrochemical supplies to meet increasing global demands for customers in China. Importantly, this agreement has set the stage for further growth in high-performance engineered thermoplastics.”

Wang Tianpu, Vice Chairman and CEO of Sinopec said: “Sinopec’s agreement on polycarbonate collaboration is another fruition of the deep and productive partnership with SABIC. Our partnership with SABIC is a good showcase of the close trade ties between China and Saudi Arabia. This investment plays critical role in perfecting our value chain and in enhancing our competitiveness. The project will drive local economic development, satisfy growing demands for polycarbonate in Asia Pacific and has significant importance to Chinese Petrochemical industry and local industry in Tianjin.”

Polycarbonate is an essential plastic used for producing components for automotive parts, compact discs, and a variety of consumer products as well as other industrial components.

Today, SABIC in Asia has seen strong double digit growth, with 41 offices, 10 manufacturing sites and 5 Technology & Innovation Centers across 13 key Asian markets servicing a portfolio of customers across diverse industries.

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