11 May 2010 10:02 [Source: ICIS news]
(adds comments from SABIC chairman in fourth paragraph and comments from an analyst in seventh and eighth paragraphs)
SINGAPORE (ICIS news)--SABIC and Sinopec have started commercial production at their joint 3m tonne/year petrochemical complex at Tianjin, China, the Saudi Arabian petrochemical giant said on Tuesday.
Pre-production operations at the complex began in January 2010, SABIC said in a statement.
The project, which includes a 1m tonne/year cracker, is a 50:50 joint venture between the companies.
The joint venture strengthens SABIC’s presence in the strategic Asian market, said SABIC chairman Saud bin Abdullah bin Thenayan Al Saud, in a statement.
The project would also “enhance the competitiveness of both companies in the global market and create the potential for more such projects”, SABIC said.
The Tianjin complex also houses a 40,000/360,000 tonne/year ethylene oxide/ethylene glycol (EO/EG) unit, a 300,000 tonne/year linear low density polyethylene (LLDPE) plant, a 300,000 tonne/year high density polyethylene (HDPE) facility and a 450,000 tonne/year polypropylene (PP) plant.
It also has a 600,000 tonne/year cracked gasoline hydrogenation unit, a 200,000 tonne/year butadiene extraction facility, a 350,000 tonne/year phenol/acetone unit and a 120,000/50,000 tonne/year methyl tertiary butyl ether (MTBE)/butene-1 plant.
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“This also indicates that market competition will be more fierce in the future, especially when demand is not very strong,” said Wang.
With additional reporting by Judith Wang
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