Sinopec and INEOS sign $7 billion project cooperation agreement
13 December 2022
On December 7, INEOS and Sinopec signed a series of joint venture cooperation agreements with a total value of around $7 billion (£5.7bn). The agreement includes three headline deals, including INEOS acquiring a 50% stake in Shanghai Secco, a subsidiary of Sinopec.
The second deal will see INEOS and Sinopec establish a new joint venture company with a 50:50 share ratio, which will aim to produce 1.2 million tons of Acrylonitrile Butadiene Styrene (ABS) per year to meet China's rapidly growing demand for the thermoplastic polymer.
The third agreement will see INEOS and SINOPEC build a new 500,000 ton per year high-density polyethylene (HDPE) plant as part of the Tianjin Nangang Ethylene Project, which is expected to be put into operation by the end of 2023.
The three landmark agreements are expected to achieve a combined annual production capacity of 7 million tons and generate approximately US$10 billion in annual sales.
INEOS and Sinopec first announced a cooperation plan in July 2022. Sinopec Chairman Ma Yongsheng and INEOS Chairman Jim Ratcliffe signed the project cooperation agreement online.
Ma Yongsheng said that Sinopec and INEOS have cooperated for many years, and the signing of this agreement will bring the cooperative relationship between the two parties to a new level. It is believed that under the requirements of the "dual carbon" goal and the transformation of energy and chemical industries, Sinopec and INEOS can give full play to their strong local advantages, resource advantages and technological advantages, and continue to promote the complementary advantages of both parties to achieve win-win development.
Jim Ratcliffe, Founder and Chairman of INEOS, said that the joint project with Sinopec in Tianjin has expanded INEOS' petrochemical business footprint in China.
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