Saudi Basic Industries Corporation (SABIC) and China's Rongsheng Petrochemical have taken a significant step toward expanding their presence in the advanced materials sector by signing a Project Development Agreement for the Jintang New Materials Project. The agreement, announced by Rongsheng Petrochemical on July 16, establishes a framework for long-term collaboration and explores a potential strategic equity investment by SABIC in Rongsheng's wholly owned subsidiary, Rongsheng New Materials.
Under the proposed arrangement, SABIC is evaluating the acquisition of a stake ranging between 30% and 50% in Rongsheng New Materials. If completed, the investment would represent a strategic partnership between two globally recognized petrochemical companies. The agreement also outlines cooperation in project planning and development while paving the way for a future Final Investment Decision (FID).
SABIC brings extensive expertise in specialty materials, supported by its portfolio of high-performance products, including LEXAN™ polycarbonate, NORYL™ polyphenylene ether, and LNP™ engineering thermoplastics. These materials are widely utilized in demanding applications such as automotive lightweighting, electrical and electronics, healthcare, and industrial manufacturing due to their superior mechanical strength, thermal stability, and chemical resistance.
Rongsheng Petrochemical, meanwhile, has established itself as one of the world's largest integrated refining and petrochemical producers, with chemical production capacity exceeding 60 million metric tonnes annually. The company is a major supplier of polyester, polyolefins, engineering plastics, rubber, and new energy materials, while maintaining leading global production capacities for paraxylene (PX) and purified terephthalic acid (PTA). It also ranks among the world's largest producers of polyethylene (PE), polypropylene (PP), polyethylene terephthalate (PET), ethylene vinyl acetate (EVA), acrylonitrile butadiene styrene (ABS), polycarbonate (PC), and synthetic rubber.
The Jintang New Materials Project is a central element of Rongsheng's strategy to expand into higher-value specialty materials. The facility will focus on manufacturing high-performance resins, biodegradable plastics, specialty polyesters, and advanced fibers, supporting growing demand from sectors such as renewable energy, consumer electronics, premium packaging, and electric vehicles across China and the broader Asian market.
By combining Rongsheng's large-scale integrated manufacturing capabilities with SABIC's advanced technologies and well-established global customer network, both companies aim to accelerate innovation and establish the Jintang project as a benchmark for advanced materials production. According to Rongsheng's management, the partnership reflects a mutually beneficial collaboration that strengthens technological development while enhancing resilience in a challenging global petrochemical market. If SABIC proceeds with its investment, Rongsheng is expected to benefit from improved research capabilities, faster commercialization of high-end products, greater international market access, and stronger integration into the global petrochemical value chain.
Impact on Products and ChemAnalyst Chemical Prices
The collaboration is expected to strengthen the supply of high-performance resins, biodegradable plastics, specialty polyesters, engineering plastics, polycarbonate (PC), ABS, PET, PE, PP, EVA, and advanced fibers over the medium to long term. Initially, the announcement is unlikely to influence market prices, as production will begin only after the project reaches its final investment decision and construction progresses. However, once operational, increased production capacity could improve regional availability of engineering plastics and specialty polymers across Asia, easing supply constraints. Consequently, ChemAnalyst may observe stable to moderately softer price trends for selected advanced polymers and engineering plastics, while downstream industries could benefit from improved material availability and enhanced supply chain reliability.
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