INEOS signs two historic agreements with SINOPEC
© INEOS
The British and Chinese groups are expected to generate a combined turnover of ten billion dollars from these agreements.
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On 28 December, the British group INEOS, owned by Monegasque resident Jim Ratcliffe, revealed the completion of two of the four major petrochemical agreements announced last year with the Chinese group SINOPEC.
INEOS now owns 50% of the Shanghai-based company SECCO. The two petrochemical groups have also created a 50:50 joint venture for ABS (Acrylonitrile Butadiene Styrene).
According to the French trade magazine L’Usine Nouvelle, these two “historic” partnerships will make it possible to produce “more than seven million tonnes of petrochemical products for a combined turnover of ten billion dollars.”
The two other agreements are expected to be finalised during 2023. The first will lead to the creation of an HDPE (high-density polyethylene) joint venture in Tianjin, China, owned equally by the two groups. The company will produce 500 kilotonnes per year of high density polyethylene.
The second will allow INEOS to acquire a 50% stake in the Tianjin Nangang Ethylene Project. A project currently under construction by SINOPEC, which should be operational by the end of the year.
“These agreements significantly reshape INEOS’ petrochemical production and technology in China,” commented Jim Ratcliffe. “We are pleased to make these major investments with SINOPEC in areas that provide the best growth opportunities for both companies. Both parties recognise the potential for closer collaboration across a number of other areas as we look ahead.”