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