(EnergyAsia, January 17 2012, Tuesday) --- Saudi Arabia’s chemical giant SABIC and China’s Sinopec said they will jointly invest in a new 260,000 metric tons/year polycarbonate plant at the Sinopec SABIC Tianjin Petrochemical Company (SSTPC) in Tianjin city in northeastern China. The existing SABIC-Sinopec plant has an annual production capacity of three million tons.

The companies have also signed a protocol of cooperation to explore new business opportunities while affirming their collaboration to produce polycarbonate in China.
 

Under the patronage of Saudi King Abdullah bin Abdulaziz, and in the presence of Chinese Premier Wen Jiabao, the protocol was signed in Riyadh yesterday 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.
 
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 its plants in China and other parts of Asia.

Polycarbonate is a basic raw 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 project will strengthen SABIC’s competitiveness and could lay the groundwork for further joint ventures between the two companies, offering more opportunities for two-way exchange of technologies and sharing of markets. Long-term strategic partnerships will boost the economies of the two countries in the areas of scientific research, technological innovation, engineering, project implementation, product marketing and procurement, he said.

The latest agreement and joint investment by the two companies further integrates the economies of Saudi Arabia and China, especially in the areas of petrochemicals, engineering and construction.

Prince Saud said: “I appreciate the respectful relationship and mutual cooperation between Saudi Arabia and China as well as the efforts of these two countries’ leaders to widen this relationship at all levels, particularly within economic and industrial affairs.

“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.”

Mohamed Al-Mady, SABIC vice chairman and CEO, said: “China represents the fastest growing market for SABIC globally.

A key success factor in our rapid growth in China is the partnership with Sinopec, and the protocol of cooperation represents our commitment to creating sustainable long term success with our partners. We look forward to powering our ambitions in delivering materials that will form the building blocks for China’s industries to innovate globally.”