The Saudi Basic Industries Corporation, or SABIC, has signed a contract with China’s Fujian Petrochemical Industrial Group or FJPEC, said local reports on Thursday, September 2.
The joint venture is expected to see SABIC build a mega petrochemical complex in China.
The complex is expected to be built at the Gulei Industrial Park in Zhangzhou city, in the east of China’s Fujian Province.
The total investment going into the project will reportedly be 40 billion yuan ($6.18 billion).
It is expected to consist of a mixed-feed steam cracker that holds an annual ethylene capacity of 1.5 million tons.
It will also reportedly have a series of downstream facilities including a mono ethylene glycol unit, two polyethylene units, two polypropylene units, one polycarbonate unit, and several byproduct units.
SABIC had announced in September 2018 that it had signed a memorandum of understanding with the Fujian provincial government to build a world-class petrochemical complex in China’s southeastern province.
SABIC is the chemical arm of the Saudi Arabian Oil Company, or Saudi Aramco.