The Saudi Basic Industries Corporation (SABIC) said on Sunday it has taken the final decision on investment in the SABIC Fujian Petrochemical Complex Project, the Saudi-Chinese Guli Ethylene Complex Project to be established in the Fujian Province of China.
SABIC Fujian Petrochemical is to be set up as a joint venture between SABIC Industrial Investments, wholly owned by SABIC, and Fujian Fuhua Guli Petrochemical Co., Ltd on a 51:49 equity stake basis.
The project investment is estimated to be about $6.4 billion (44.8 billion Chinese yuan).
The project, billed as the largest foreign investment in Fujian Province, represents another extension of the Saudi giant’s core investments in China.
The complex consists of a mixed-feed steam cracker, with an expected annual ethylene production capacity of 1.8 million tons, along with a series of world-class downstream manufacturing facilities, including ethylene glycol, polyethylene, polypropylene and polycarbonate production facilities.
The construction work of the project is expected to be completed by 2026.
CEO Abdul Rahman Al-Faqih, said making the final investment decision for this project is an important step in the company’s ongoing efforts to develop and expand its presence in China.
“The project aims to diversify the sources of feedstock needed for our business and enhance our presence in China,” he said.
Al-Faqih said the petrochemical industry in Asia includes a wide range of products and applications, and the final investment decision reflects SABIC’s keenness to continue its commitment to providing innovative solutions to its customers and maximizing the value it provides to its shareholders and investors.
This will be the second major achievement of the petrochemical company’s joint projects in recent years, after the start of commercial operation of the new polycarbonate plant located within the joint venture Sinopec SABIC Tianjin Petrochemical Co., Ltd in 2023.
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