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SABIC Initiates Building $6.4 Billion Petrochemical Complex in China
SABIC Initiates Building $6.4 Billion Petrochemical Complex in China

SABIC Initiates Building $6.4 Billion Petrochemical Complex in China

  • 20-Feb-2024 5:49 PM
  • Journalist: Kim Chul Son

SABIC has embarked on the construction of a colossal $6.4 billion manufacturing facility situated in the southern reaches of China's Fujian province. This groundbreaking endeavor, known as the SABIC Fujian Petrochemical Complex, is strategically located within the Guley Petrochemical Industrial Park. The ambitious project encompasses a cracking unit, utilizing mixed feedstocks, boasting an impressive capacity of up to 1.8 million ton of ethylene annually. Additionally, the complex will play a pivotal role in the production of ethylene glycol, polyethylene, polypropylene, and polycarbonate.

The SABIC Fujian Petrochemical Complex is a testament to SABIC's commitment to advancing the petrochemical landscape, and its realization signifies a monumental step toward solidifying the company's footprint in the dynamic Chinese market. The complex's cracking unit, with its substantial ethylene production capacity, aligns with the growing demand for key petrochemical products in the region.

SABIC, a global leader in diversified chemicals and a subsidiary of the energy giant Saudi Aramco, has formed a strategic partnership for this venture. SABIC Fujian Petrochemicals Company (SFPC), the entity overseeing the project, operates as a joint venture between SABIC Industrial Investment Company—a wholly-owned subsidiary of SABIC—and Fujian Fuhua Gulei Petrochemical, with ownership distributed at a ratio of 51:49 respectively. This collaborative effort underscores the importance of leveraging expertise and resources for the successful execution of such a significant industrial endeavor.

The joint venture between SABIC and Fujian Fuhua Gulei Petrochemical signifies a shared vision for the successful implementation of this complex project. SABIC, as a global chemical industry leader, brings its wealth of experience and technological prowess to the partnership, ensuring that the SABIC Fujian Petrochemical Complex aligns with the highest industry standards and sustainability practices.

In addition to the groundbreaking ceremony held on February 19, pivotal milestones were achieved with the signing of engineering, procurement, and construction contracts. Simultaneously, a loan agreement for project financing was inked, solidifying the financial backing required for the successful realization of the SABIC petrochemical complex in Fujian.

SABIC's substantial investments in China extend beyond the Fujian project. The company has made significant strides with three compound plants strategically located in Shanghai, Guangzhou, and Chongqing. Further collaborations include a joint venture with Sinopec in Tianjin, the establishment of a technology center in Shanghai, and the operation of a customer service center office in Guangzhou. These endeavors collectively underscore SABIC's commitment to fostering a robust presence and contributing to the development of China's dynamic petrochemical industry.

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