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Sabic Signs Cooperation Agreement with Sinopec

Source: www.gulfoilandgas.com 1/15/2012, Location: Middle East

Under the patronage of Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz, and in the presence of China Prime Minister Wen Jiabao, the Saudi Basic Industries Corporation (SABIC) and the China Petroleum and Chemical Corporation (Sinopec) signed a Protocol of Cooperation in Riyadh to explore new business opportunities and confirm their commitment to the principles reached in earlier agreements, including one on polycarbonate collaboration which has been approved by China’s National Development and Reform Commission (NDRC).

The Protocol of Cooperation was signed by Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, and Fu Chengyu, Chairman of the Sinopec Group and the Sinopec Corporation. Mohamed Al-Mady, SABIC Vice Chairman and CEO, was also present at the signing ceremony.

The Protocol sets the foundation for a joint investment from both SABIC and Sinopec to build the new polycarbonate production complex with an annual capacity of 260 kilo metric tons. The new facility will be located at the Sinopec SABIC Tianjin Petrochemical Company (SSTPC) in Tianjin, China.

Polycarbonate is an essential material used for producing components for a vast array of consumer, industrial and commercial products ranging from automotive parts, household wares to medical supplies. The new polycarbonate production will help meet the projected growth in demand for North East Asia, which includes China. Satisfying this demand is essential for producing petrochemical materials from China’s vast manufacturing industries.

Speaking after the signing ceremony, Prince Saud said, "I appreciate the respectful relationship and mutual cooperation between the Kingdom of Saudi Arabia and People’s Republic of China as well as the efforts of these two countries’ leaders to widen this relationship at all levels, particularly within economic and industrial affairs.”

He assured the importance of integration between Saudi Arabia and China, especially in the areas of petrochemicals, engineering and construction, especially as these sectors are seeking investment opportunities in both countries.

He added, “SABIC and Sinopec’s aspirations are now focused on establishing long-term strategic cooperation that contributes towards enriching Saudi Arabia’s and China’s economies in the areas of scientific research, technology and innovation, engineering and product marketing.”

Prince Saud emphasised that SABIC is keen to continue its investments in China’s marketplace generally and one significant aspect of the new project is that it will use SABIC-owned polycarbonate production technology. The technology mitigates the environmental footprint in the polycarbonate production process.

When the plant is fully operational in 2015, SABIC will become one of the world’s largest producers of polycarbonate, significantly boosting SABIC’s market share. The Protocol of Cooperation, which covers marketing, allows SABIC to supply polycarbonate as feedstock to the company's other plants in China and the Pacific region.

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