New Sino-Saudi venture inaugurated

Two petrochemical giants from China and Saudi Arabia have announced the inauguration of their new complex in China. The joint venture between Sinopec and SABIC is capable of making 3.2 million tons of petrochemical products a year, supplying the whirlwind pace of the Chinese market.

Sinopec Chairman Su Shulin (3rd from right), SABIC Chairman Prince Saud Bin Thenayan Al Saud (3rd from left) and Executive Vice-Mayor of Tianjin Yang  Dongliang (2nd from right) at yesterday's inauguration ceremony in Beijing. [China Daily]

Tuesday, at the Great Hall of the People, Asia's top refiner Sinopec and the world's 5th largest petrochemical firm, Saudi Arabia Basic Industries Corporation, or SABIC, inaugurated their first joint venture in China.

Built at a cost of 2.7 billion US dollars, the 50-50 venture in Tianjin will begin production by the first quarter of 2010. It's SABIC's first venture in China. Its CEO says the cooperation fits in well with its global strategy, adding that Sinopec is a perfect partner.

Mohamed Al-Mady, Vice Chairman & CEO of SABIC said "When we try to choose a cooperation partner, we only select the top ones in their field. We look at their capabilities in technology, management and finance. Both SABIC and Sinopec are among the best in their fields around the world, and this cooperation will prove to be productive."

Meanwhile, Sinopec's CEO says the cooperation will boost technology levels and help adjust the structure of China's petrochemical industry. The giant project will trigger an additional 15 billion US dollar investment in associated industries and create 20 thousand jobs.