Chemical producer Saudi Basic Industries Corp. (SABIC) on Tuesday announced the final investment decision (FID) to establish a petrochemical complex in the Gulei Industrial Park in China's Fujian province with an estimated investment of 44.8 billion yuan (approximately $6.4 billion).
The project, also known as the Sino-Saudi Gulei Ethylene Complex Project, marks a major milestone in the company's efforts to diversify its global footprint and enhance its presence in the Asian market.
The SABIC FUJIAN Petrochemicals Co. Ltd., a joint venture between SABIC Industrial Investment Company and Fujian Fuhua Gulei Petrochemical, will oversee the establishment of the complex in the Gulei Industrial Park.
The project represents the largest foreign investment in Fujian and a significant expansion of SABIC's investment in China.
The complex is set to feature a mixed-feed steam cracker with an impressive annual ethylene capacity of up to 1.8 million tons as well as a series of downstream facilities capable of producing ethylene glycol, polyethylene, polypropylene and polycarbonate, among several others.
Project completion is due by 2026.
This FID marks the second major milestone in SABIC’s joint venture history, following the recent commencement of commercial operations at a new polycarbonate plant under the SINOPEC SABIC Tianjin Petrochemical joint venture in 2023.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr