Sumitomo buys 25% of CEPSA China chemical unit
CEPSA and Sumitomo have entered into an agreement for the Japanese company to acquire 25% of CEPSA Quimica China, until now 100% owned by CEPSA.
The move is expected to give a boost to a petrochemical factory construction project in Shanghai, in which CEPSA has been involved since 2011.
"Welcoming a partner like Sumitomo is, for us, a major opportunity, as their company has built up vast industrial experience in the Asian region and is a leader in the commercialization of various products," said CEPSA chief executive Pedro Miro. "We are convinced that our business activities in China will experience a major boost and that this agreement will allow us greater flexibility to adapt our operations to the requirements of Chinese and Asian markets."
The plant that CEPSA is building in Shanghai through its subsidiary CEPSA Quimica China is currently undergoing the final phases of construction.
Once complete, as well as having the capacity to produce 250,000 tpy of phenol, 150,000 tpy of acetone and 360,000 tpy of cumene, it will also make CEPSA the second largest producer of phenol in the world. This raw material is mainly used in the automotive and construction industries to manufacture plastics and phenolic resins.
The agreement will combine Sumitomo's Asian market trading capabilities with CEPSA's experience in the petrochemical sector, in which it has been active for over 40 years through its subsidiary CEPSA Quimica.
"There are many different markets in China that are growing at a remarkable pace, such as the automotive sector," said Kuniharu Nakamura, CEO from Sumitomo. "Participating in this company is, for us, an opportunity to form part of a major, exciting and ambitious project and we are looking forward to seeing how it develops.
From the Archive