SABIC considers joint venture with Chinese partners
The facility will focus on highly-differentiated applications and segments through polymers derivatives.
Yousef A. Al-Benyan, Vice Chairman and CEO of SABIC, commended the high growth rates demonstrated by the Chinese economy, highlighting SABIC's intent on developing collaboration with production sectors in China. He further said, "We gather here today not merely to sign an agreement on a specific new project," adding, "More broadly, we look to further SABIC's investment in the Chinese economy and our strategic engagement with key participants in the Chinese petrochemicals industry."
The project will be located in the Ningxia Hui Autonomous Region. The agreement includes certain commitments from the Ningxia Government to provide support and incentives to the project, while also providing a framework for coordination and cooperation between the three parties in connection with the project approval process.
The agreement was signed during the visit of a high-level delegation from the Kingdom, led by the Deputy Crown Prince, HRH Mohammed bin Salman, under the patronage of HE Khalid Al-Falih Minister of Energy, Industry and Mineral Resources, and HE Dr. Majed bin Abdullah Al-Qasabi Minister of Commerce and Investment, and in the presence of a number of ministers, who were visiting China in connection with the Kingdom's current participation in the G20 summit.
The cooperation between the parties with respect to the coal-to-chemicals project contributes to the Chinese government's "Belt & Road Initiative", expanding the economic ties and bilateral trade between Saudi Arabia and the People's Republic of China. The project would leverage the shareholders' respective best practices, operational experience, and technologies in the petrochemical industry.
The project would benefit from SABIC's participation through the utilization of SABIC's advanced technologies. The project would also have access to SABIC's global Technology & Innovation Centers for product development, and technical support and application development programs. SABIC would also leverage its extensive global marketing and customer service capabilities.
The project would also benefit from the participation of SNCG, which is an affiliate of Shenhua Group, one of the largest coal producers and suppliers in China, as well as a global coal-based, integrated energy and chemicals company.
The project would also gain from its location in the Ningxia Hui Autonomous Region, which is one of the largest coal producing regions in China, and the incentives and support that will be provided by the Ningxia Government.