LONDON (ICIS)--Japan-headquartered Sumitomo Corporation has taken a 25% stake in a Chinese subsidiary of CEPSA, currently developing a phenol, acetone and cumene plant in Shanghai, the Spain-based oil and gas company said on Friday.
CEPSA Quimica China, based in Shanghai, will now be run as a joint venture, with CEPSA retaining a 75% interest in the company, it added. Financial terms were not disclosed.
"There are many different markets in China that are growing at a remarkable pace, such as the automotive sector,” said Sumitomo CEO Kuniharu Nakamura.
CEPSA Quimica is currently developing a plant in Shanghai to produce 250,000 tonnes/year of phenol, 150,000 tonnes/year of acetone, and 360,000 tonnes/year of cumene.
Once onstream, CEPSA will be the world’s second-largest producer of phenol, used primarily in the automotive and construction industries.