By SUMMER SAID
RIYADH -- Saudi Basic Industries Corp., or Sabic, the Middle
East's largest listed company, said Tuesday its joint venture
with China Petrochemical and Chemical Corp. (SNP), or Sinopec,
to build a new polycarbonate plant at its petrochemical complex in Tianjin
city will cost $1.7 billion.
The new polycarbonate (PC) production complex with an annual
production capacity of 260,000 tpy will be located at the
Sinopec Sabic Tianjin Petrochemical Co., or SSTPC, complex
in northern China's Tianjin city, Sabic said in an emailed
Sabic, which revealed
the plan first in May last year, said the plant will be
operational by 2015 and construction will start
Polycarbonate is a key plastic used for producing components
for automotive parts and a variety of consumer products.
When the plant is fully operational, Sabic will become one
of the world's largest producers of polycarbonate,
significantly boosting Sabic's market share, the firm has
The joint venture, which covers marketing, allows Sabic to
supply polycarbonate as feedstock to the company's other
plants in China and the Pacific region.
Petrochemical makers such as Sabic
are boosting their exports to and investments in Asia, notably
China, to meet rapidly rising demand for chemicals and plastics
used in the production of industrial and consumer products.
The Sabic-Sinopec deal came at the end of Chinese Premier
Wen Jiabao's first trip to Saudi Arabia as part of a six-day
tour to the Middle East.
Sinopec on Saturday separately signed an agreement with
state giant Saudi Arabian Oil Co., or Aramco, to develop a
400,000 bpd oil refinery at Yanbu, on the Saudi Red
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