Saudi Basic Industries Corporation, known as SABIC, and Fujian Petrochemical Industrial Group Co., Ltd. (FJPEC) signed a contract on August 18, 2021 to form a joint venture.

The two companies will establish a 51:49 joint venture after receiving approval from the relevant Chinese government authorities. The venture proposes to invest RMB 40 billion (approximately US$6.15 billion) to build and operate a world-class large-scale ethylene complex at the Gulai Petrochemical Base in Fujian Province, China.

The planned petrochemical complex project will build a mix-fed steam cracker, with ethylene capacity of 1.5 million mt/year. At the same time, the project will include a series of downstream production units, including an ethylene glycol (MEG) unit, two sets of polyethylene (PE) unit, two of polypropylene (PP) units, a polycarbonate and other production units.

There is no clear timeline for the construction and startup yet.

Source: FJPEC