SABIC, Sinopec partner for new China PC plant

Saudi Basic Industries Corp. (SABIC) has partnered with China’s Sinopec Petroleum & Chemical Corp. to build a new polycarbonate (PC) production plant in China with a capacity of 260,000 metric tons per year.

Financial details of the agreement were not disclosed.

The agreement adds to Tianjin, China-based SSTPC, SABIC’s existing 50-50 joint-venture with Sinopec. Fully operational since 2010, the SSTPC venture produces various petrochemical products, including ethylene, polyethylene, ethylene glycol, polypropylene, butadiene, phenol and butene-1, among others.

The new PC plant will be located in the SSTPC complex and is expected to be operational by 2015.

“This announcement will strategically position both companies as world-class producers of essential petrochemical supplies to meet increasing global demands for customers in China,” said Mohamed Al-Mady, SABIC’s CEO. “Importantly, this agreement has set the stage for further growth in high-performance engineered thermoplastics.”