LONDON (ICIS)--SABIC is mulling a “world-scale” petrochemical complex in the Chinese province of Fujian although no “definitive timelines” have been set out, the Saudi major said on Tuesday.
The company has signed a memorandum of understanding (MoU) with the Fujian provincial government. The region is located in southeast China, south of Shanghai.
“The MoU is part of SABIC's strategy to diversify its operations, seek new investment opportunities and strengthen its position in the Chinese market,” said the company.
SABIC had not responded to a request for additional comment on the project at the time of publication.
Despite rising trade tensions between the US and China, with some analysts pointing to a potential weakening in the Chinese economy as a result, several global petrochemical companies continue to announce investments in the country.
Last week, US major ExxonMobil said it is also mulling “multibillion-dollar” chemical complex in China’s Guangdong province which would include a 1.2m tonne/year flexible feed steam cracker, as well as polyethylene (PE) and polypropylene (PP) units.
The facility is expected to start operations in 2023, although the company added that the project’s realisation would depend on its future “competitiveness”.