SABIC, under the auspices of the Ministry of Energy, signed on August 1 a potential investment agreement with the Fujian government to build an engineering thermoplastics compounding plant in Fujian Province, China, according to a SABIC press release issued today.
SABIC Executive Vice President, Polymers Sami Al-Osaimi, and Fujian Zhangzhou Gulei Port Economic Development Zone Administration Committee Deputy Director Ma Changjian signed the agreement.
Attending the signing ceremony, which took place at the Ministry of Energy in Riyadh, were Fujian Province Party Secretary Zhou Zuyi, Ministry of Energy Assistant Minister for Development and Excellence Sector Ahmed Al-Zahrani, and SABIC CEO Abdulrahman Al-Fageeh.
The release said this investment further underscores SABIC’s efforts to meet the requirements for differentiated innovative solutions from its local customers in China while strengthening its roots in the Chinese market and its contributions to the sustainable development of the chemical industry.
Al-Fageeh said: ‘This investment agreement marks another significant milestone for SABIC’s growth in China and reflects our continued confidence in investing in the country. By creating synergy with upstream and downstream partners, the project aims to strengthen our supply capability in compounding products and serve this important strategic market with innovative and consistently high-quality material solutions. Building on this, we will continue to collaborate with our existing global and local partners and customers to grow together in China.”
The planned plant will be located in the Gulei Port Economic Development Zone, Zhangzhou, Fujian. It will primarily produce pelletized LEXANS Polycarbonate (PC) and CYCOLOYS PC/ABS blends for use in advanced materials tailored to the needs of industries including electrical and consumer electronics, automotive, and emerging sectors such as solar energy, electrification, and 5G.
The site will include compounding lines, color development capabilities, and advanced e
quipment that will enable SABIC to work with its customers and partners to create new innovative solutions for engineering plastics.
In addition to the planned engineering thermoplastics compounding plant, SABIC operates a SABIC Technology Center in Shanghai and compounding plants in Guangzhou, Shanghai and Chongqing; it also has operations in 17 cities across Greater China.
The new plant is expected to create synergies with SABIC’s two existing joint ventures – SINOPEC SABIC Tianjin Petrochemical Co. Ltd. (SSTPC) and SABIC FUJIAN Petrochemicals Co. Ltd. (SFPC) – in the delivery of differentiated solutions and products.
According to SABIC, building on its expanded footprint and continuous growth in China, it will continue to leverage its strengths in manufacturing and supply while helping to strengthen innovation-led development for the chemical industry, not just in China, but across the world.
Source: Saudi Press Agency