SABIC, Sinopec to construct 260,000 tonne/year polycarbonate plant in China by 2015
Saudi Basic Industries Corp. (SABIC) and China Petroleum & Chemical Corp. (Sinopec) said on Tuesday that they will build a new polycarbonate production plant in China with a capacity of 260,000 tonnes/year.
The agreement adds to SABIC’s 50-50 joint-venture with Sinopec, Tianjin-based SSTPC (Sinopec SABIC Tianjin Petrochemical Co.), the companies said.
The new polycarbonate plant will be located in the SSTPC complex in northern China and is expected to be operational by 2015.
Fully operational since 2010, the SSTPC venture produces various petrochemical products, including ethylene, polyethylene, ethylene glycol, polypropylene, butadiene, phenol and butene-1, among others.
It will leverage SABIC’s world-class advanced polycarbonate technology using phosgene and dichloromethane free process, the company said.
The performance properties of purity, transparency and continuous processing will bring local PC resin capabilities to a diverse customer base in China, officials said.
Mohamed Al-Mady, SABIC chief executive, said: “This new and exciting milestone is a strong endorsement of our partnership with Sinopec. Today’s announcement will strategically position both companies as world-class producers of essential petrochemical supplies to meet increasing global demands for customers in China. Importantly, this agreement has set the stage for further growth in high-performance engineered thermoplastics.”
Wang Tianpu, CEO of Sinopec, said: “Sinopec’s agreement on polycarbonate collaboration is another fruition of the deep and productive partnership with SABIC. Our partnership with SABIC is a good showcase of the close trade ties between China and Saudi Arabia. This investment plays a critical role in perfecting our value chain and in enhancing our competitiveness. The project will drive local economic development, satisfy growing demand for polycarbonates in Asia Pacific and has a significant importance to the Chinese petrochemical industry and local industry in Tianjin.”
Polycarbonate is an essential plastic used for producing components for automotive parts, compact discs, and a variety of consumer products as well as other industrial components.
Financial details of the agreement were not disclosed.
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