The project aims to diversify the company’s feedstock sources and expand its manufacturing presence in Asia
GPCA’s full member SABIC has finalized the investment of 44.8 billion yuan (USD 6.4 billion) in a joint venture in China.
The investment in the SABIC Fujian petrochemical complex is a significant expansion of SABIC’s core investments in the world’s second-largest economy, the company said on 22 January.
“This project aims to support SABIC’s aspiration in diversifying the company’s feedstock sources and expanding its manufacturing presence in Asia as a key market for a wide range of products”, it said in a filing to Saudi Arabia’s Tadawul stock exchange, where its shares are traded.
The joint venture, the SABIC Fujian Petrochemical Company, is 51% owned by Sabic’s wholly owned Sabic Industrial Investments while the rest is controlled by Fujian Petrochemical Company.
The complex, which will be established in the Gulei area of Fujian province, is expected to produce 1.8 million tons of ethylene annually and will include state-of-the-art plants for the manufacture of ethylene glycol, polythene, polypropylene and polycarbonate.
The construction is expected to begin during the first half of 2024, while the commissioning and start-up will commence in the second half of 2026 and will last for six months.
“The financial results are expected to be reflected after the commercial production and project completion anticipated to be during the first half of 2027,” SABIC said.
SABIC had signed the initial agreement for the petrochemicals complex in September 2018. The investment decision is part of growing trade and investment relations between Saudi Arabia and China.
In December, Saudi Arabia and China signed agreements worth more than USD 25 billion to further deepen their economic ties.
Source: The National