Saudi SABIC says China govt approved Sinopec JV

RIYADH, July 11 Sat Jul 11, 2009 7:33am BST



RIYADH, July 11 (Reuters) - Petrochemical firm Saudi Basic Industries Corp 2010.SE said on Saturday Chinese authorities have approved an equally-owned joint-venture plant with Sinopec (600028.SS).

The firm estimated the cost of the project at $3 billion, which is 20 percent above the projected cost announced in June when the two firms unveiled the expanded petrochemicals project in the Chinese region of Tianjin, state-controlled SABIC said.

The original plan for the joint venture, released in January, had given its cost as $1.7 billion.

Construction works of the plant will be completed in September, SABIC said without specifying when production would start.

The plant's products will include ethylene, polyethylene, polypropylene, glycol-ethylene and butanediol, SABIC said noting that the plant has an annual production capacity of 3.2-million tonnes.

The two firms said in June the plant would produce 4 million tonnes of petrochemical products.

A deal for the project in north China's Tianjin was signed during Chinese Vice President Xi Jinping's visit to Saudi Arabia last year. (Reporting by Souhail Karam)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.