BEIJING : China on Thursday approved the establishment of a joint venture between Saudi Basic Industries Corp (SABIC) and China's Fujian Petrochemical Industrial Group (FJPEC), according to a Chinese government-run platform.
The launch of the joint venture follows a memorandum of understanding (MoU) signed between SABIC and the Fujian provincial government in 2018 and a more detailed contract in 2021 to build a petrochemical complex.
The new firm is set to invest 40 billion yuan ($6.33 billion) to build a 1.5 million tonne per annum ethylene production complex at the Gulei Petrochemical base in the costal Fujian province.
There are plans for the complex to include a series of downstream production units, including an ethylene glycol (MEG) unit, two sets of polyethylene (PE) units, two polypropylene (PP) units and a polycarbonate unit.
Registration capital of the joint venture is 13.2 billion yuan, according to the government platform.
($1 = 6.3172 Chinese yuan renminbi)
(Reporting by Muyu Xu and Dominique Patton; Editing by Kirsten Donovan)