(Source: Middle East Company News)
Saudi Basic Industries Corporation announced that it has received an official approval from the Chinese National Development and Reform Commission to participate jointly with China Petroleum & Chemical Corporation (Sinopec) in the Tianjin petrochemical complex currently under construction in Tianjin, China.
This approval follows a strategic cooperation agreement signed by both parties on June 21, 2008 in Jeddah, Saudi Arabia. The agreement stated that both parties would enter into a 50/50 joint venture at Tianjin and would study the feasibility of adding a new product (polycarbonates) that uses raw materials produced at the complex that are based on Sabic technology.
The complex is expected to be completed in September 2009 with investments around $3bn. The complex's overall production capacity is rated at approximately 3.2m tons of various petrochemical products, including 1m tons of ethylene and other downstream products such as Polyethylenes, Ethylene Glycol, Polypropylene (PP), Butadiene, Phenol, & Butene-1.
China is the world's largest petrochemical market based on high growth rates realized by the Chinese economy. Participation in the Tianjin complex will expand Sabic's presence in Asia and ensure Sabic's closeness to its customers through local availability of its products and services that strengthen Sabic's strategic goal of being the world's preferred supplier of chemicals.
About Sabic
Sabic ranks among the world's top five producers of commodity chemicals and plastics, and is a major global developer and supplier of thermoplastics engineered to meet customer needs. Additionally, Sabic has operations in steel production and fertilizers, and increasing brand presence in high-value performance chemicals.
Sabic recorded a net profit of SR22bn ($5.86bn) in 2008. Sales revenues for 2008 totaled SR151bn ($40.2bn). Total assets stood at SR272bn ($72.5bn) at the end of 2008.
Sabic has significant research resources with 15 dedicated Research and Technology and application centers in the Middle East, the Americas, Europe and Asia-Pacific. The company operates in more than 40 countries with 33,000 employees worldwide.
The company has over 60 world-class manufacturing and compounding plants in locations across the Middle East, Asia, Europe and the Americas.
Headquartered in Riyadh, Sabic was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of Sabic shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
(c) 2009 Middle East Company News. Provided by ProQuest LLC. All rights Reserved.
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