July 20, 2026 12:51

Sabic is strengthening its presence in China through a project development agreement with Rongsheng Petrochemical and its subsidiary, Rongsheng New Materials (Zhoushan).
The agreement is aimed at jointly advancing the assessment and development of the new Jintang New Materials petrochemical complex in Zhoushan, Zhejiang Province.

The project is estimated to be worth CNY67.5 billion, equivalent to around €8.7 billion, with production expected to begin gradually from 2027.

According to Chinese industry sources, the complex is expected to include several chemical and polymer production plants, including units for aromatics, polyolefins, engineering plastics and bioplastics.

The partnership also envisages a potential equity investment by the Saudi group in Rongsheng New Materials through the acquisition of a stake of up to 50%.

The agreement also sets out a framework for project development activities leading towards a potential final investment decision (FID).

“This partnership with Rongsheng Petrochemical reflects SABIC’s vision for growth and global footprint expansion through strategic, collaborative approach,” said Faisal M. Alfaqeer, CEO of the Saudi group.

According to Xiang Jiongjiong, CEO of Rongsheng Petrochemical, “This partnership is a flagship outcome of two industry leaders complementing their strengths and robust capabilities to jointly research, develop and operate in advanced chemical materials. Against the backdrop of today’s complex market conditions, our alliance also serves as a critical stabilizing anchor for the chemical sector, enabling us to deliver more valuable and comprehensive product solutions to our customers.”

Sabic is already involved in China through the $6.4 billion petrochemical complex under development in Fujian Province in a joint venture with Fujian Fuhua Gulei Petrochemical. The project is scheduled for completion by the end of this year.

© Polimerica -  Reproduction prohibited, all rights reserved