SABIC agrees petro­chem­i­cals project with China’s Shen­hua

Arab News - - BUSINESS & ECONOMY -

JED­DAH: Saudi Ba­sic In­dus­tries Corp. (SABIC), one of the world’s largest petro­chem­i­cals groups, said on Mon­day it had signed an agree­ment with Shen­hua Ningxia Coal In­dus­try Group to build a petro­chem­i­cal com­plex in China.

SABIC said in a state­ment the joint project would be a “green­field petro­chem­i­cal com­plex” lo­cated in the Ningxia Hui Re­gion of China and would help the Saudi com­pany di­ver­sify its feed­stock sources.

“The joint ven­ture would ben­e­fit from its lo­ca­tion in Ningxia and uti­lize lo­cally avail­able coal feed­stocks to be sup­plied by SNCG,” SABIC said.

The Chi­nese com­pany is a unit of Shen­hua Group Cor­po­ra­tion Lim­ited.

SABIC said the plans were part of its on­go­ing strat­egy to di­ver­sify its op­er­a­tions ge­o­graph­i­cally and to seek in­vest­ments that would open up the com­pany to new mar­kets.

The com­plex would also help SABIC get its feed­stock from a wider va­ri­ety of sources, it said.

“This pro­tects SABIC against the fluc­tu­a­tions and cycli­cal move­ments in feed­stock price in the in­ter­na­tional mar­kets, which helps en­sure a prof­itable growth strat­egy,” SABIC Chair­man and CEO Yousef Al-Benyan said in the state­ment.

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