27 January 2011 13:00 [Source: ICIS news]
LONDON (ICIS)--INEOS has signed an agreement with Sinopec on a joint venture (JV) to build a 400,000 tonne/year phenol plant in ?xml:namespace>
The companies have signed a memorandum of understanding (MOU), agreeing the framework for the design and future operation of the phenol/acetone JV at the Nanjing Chemical Industrial park in Jiangsu province.
Annual capacity will be 400,000 tonnes/year of phenol and 250,000 tonnes of acetone, making it the largest plant of its kind in
The facility, expected to be completed by the end of 2013, will also include 550,000 tonnes/year of cumene capacity.
”This joint venture will allow INEOS to bring its proprietary phenol technology to China and teaming with a strong, local partner like Sinopec YPC will bring considerable value to our business and our customers.”
The MOU was preceded by a letter of intent signed in December 2009 and follows a detailed evaluation of the investment.
Financial details were not disclosed.
On Wednesday, INEOS director Tom Crotty told ICIS how the companies planned to move forward with the project.
“The next phase is to turn that letter of intent into a proper memorandum of understanding, which is the next stage before a finished contract," he said.
“This will describe how [the joint venture] would work, which will then lead to the signing of binding contracts,” he added.
“We hope to make progress during this year in getting everything signed up so that we can start construction in 2012,” Crotty said.
Earlier this month, INEOS signed framework agreements with PetroChina and its parent company, China National Petroleum Corporation (CNPC), related to partnerships in refining, trading and petrochemicals.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|