By WAYNE MA
BEIJING -- China Petroleum & Chemical Corp., also known
as Sinopec, and BASF, the world's largest chemical company by
sales, signed a preliminary agreement on Tuesday to build a
"world-scale" iso-nonanol plant in southeastern Guangdong
Iso-nonanol is primarily used in plastics manufacturing.
It ultimately ends up in products such as wires, cables and
flooring, and in the automotive, building and construction sectors, Sinopec said
in a statement, without specifying the proposed plant's
At the moment, China relies exclusively on imports of
iso-nonanol mainly from Germany and Singapore, Sinopec said,
adding that China imported 318,600 metric tons of the chemical
Under the memorandum of understanding, the financial terms
of which weren't disclosed, Sinopec and BASF will each take a
50% stake in the joint venture and will also jointly operate
the facility, which will be located in the Maoming Hi-Tech
Industrial Development Zone, according to the statement.
A joint feasibility study for the project is expected to be completed
by the end of this year, Sinopec added.
Sinopec and BASF already jointly operate a petrochemical plant in the eastern
city of Nanjing, it said.
Dow Jones Newswires