Chinese Government Approves Tianjin Petrochemical JV Plant between Sinopec and SABIC

Chinese National Development and Reform Commission (NDRC) has approved the Tianjin petrochemical jv complex currently under construction in Tianjin between China Petroleum & Chemical Corporation (Sinopec Corp.) and Saudi Basic Industries Corporation (SABIC). SABIC announced July 11th.   
   This approval follows a strategic cooperation agreement signed by both parties on June 21st, 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 by at the complex that are based on SABIC technology.  
   The complex is expected to be completed in September 2009 with investments around US$3 billion. The complex's overall production capacity is rated at approximately 3.2 million tons of various petrochemical products, including 1 million tons of ethylene and other downstream products such as polyethylene, 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. (CCR2008 No. 6)