Ineos and Sinopec have signed three major petrochemical deals worth $7 billion.
Britain's Ineos and China's Sinopec have signed three deals totaling $7 billion.
In particular, Ineos has agreed to acquire a 50% stake in Shanghai Secco Petrochemical Company Limited (Secco), a subsidiary of Sinopec. Secco currently has a production capacity of 4.2 million tons of petrochemical products, including ethylene, propylene, polyethylene, polypropylene, styrene, polystyrene, acrylonitrile, butadiene, benzene and toluene.
Ineos and Sinopec will also create a joint venture on a parity basis with the intention to increase production capacity to 1.2 million tons of ABS to meet the rapidly growing demand in China.
The ABS plant with a capacity of 600 thousand tons per year in Ningbo, which is planned to be commissioned by the end of 2023, will become part of the joint venture. Two additional ABS plants with a capacity of 300 thousand tons per year are also planned, which will also be built on the basis of the world-leading Ineos Terluran ABS technology. One of these plants will be located in Tianjin, the location of the other has not yet been determined.
Under the third agreement, Ineos and Sinopec will create a joint venture with a 50:50 parity for the construction of a new plant for the production of high-density polyethylene with a capacity of 500 thousand tons per year in Tianjin. It is expected that the plant will be launched by the end of 2023.In addition to the Tianjin plant, Ineos and Sinopec will build at least two additional HDPE plants with a capacity of 500 thousand tons per year for the production of INEOS pipe grade in the future.
All transactions are subject to regulatory approval. Each transaction is expected to be completed by the end of the year.
News source: polymerbranch.com