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In brief

Sir Jim Ratcliffe expands his INEOS group into China

jim-ratcliffe-ineos
AFP

The group hopes to achieve an additional USD 10 million in turnover through deals with the company SINOPEC.

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China is a key region for the expansion of the British company INEOS. With this in mind, the British petrochemical group, owned by Monaco resident Sir Jim Ratcliffe, has just concluded three deals with the Chinese company SINOPEC.

While the UK’s richest man invested in green hydrogen last year, the businessman is now returning to his roots within the petrochemical industry. The deals will allow the British company to expand further into China and generate an additional $10 million in turnover.

Three deals for a stronger footing

In these agreements, INEOS would reportedly acquire 50% of the shares of SECCO, a subsidiary of SINOPEC. With a size of 200 hectares and specialised in the production of various plastics, the Chinese company would allow INEOS to establish itself on a long-term basis in the Shanghai region.

The deals also plan to create two equally shared joint ventures. The first would be to develop ABS plastic production at a plant based in Ningbo. The aim is to reach 600 tonnes per year, with a new plant under construction to meet growing Chinese demand. Two other Chinese factories are expected to benefit from the plan and increase their capacity to 300 tonnes per year. 

The second joint venture, also equally divided, is said to help build three new plants specialising in the manufacture of high-density polyethylene. Each of these is expected to produce a capacity of 500 tonnes of plastic per year.

The collaboration between the two British and Chinese companies is not new. In 2021, both had already formed a joint venture and had worked closely together for two decades.

“We are pleased to conclude these major investments with SINOPEC in areas that offer the best growth opportunities for both companies,” said Sir Jim Ratcliffe, CEO of INEOS, following the signing of the agreements.