BP and Sinopec announced today in Beijing that they had signed a joint venture contract to build a 500,000 tonne per year acetic acid plant in Nanjing, Jiangsu province.
Located in Nanjing, at the heart of the Yangtzi Delta - one of the most dynamic regions in economic development in China, this world-scale joint venture is expected to be on stream in the second half of 2007. The plant will incorporate BP’s world leading CATIVA® technology and the equity split between BP and Sinopec is 50:50. The Sinopec investment will take place through the Yangtzi Petrochemical Company, a majority owned Sinopec Corporation subsidiary.
Lord Browne, group chief executive of BP plc. said: “Working together, Sinopec and BP have demonstrated their capability to deliver world class investment opportunities at the world class standards to supply the rapidly expanding petrochemicals market in China. Our joint investment in a new acetic acid plant serves as a further evidence of BP’s long term commitment to China and our strategic partnership with Sinopec.”
“Building on the success of YARACO and SECCO, this investment demonstrated once again BP’s strong commitment to build a material presence in China, the most important emerging chemicals market in the world. The use of BP's world-leading CATIVA® technology, and the logistic advantages Sinopec brings in East China will make this a very competitive source of acetic acid,” Lord Browne continued.
Mr. Wang Jiming, President of Sinopec Corporation said: “The global petrochemical sector is on the up cycle and Chinese market demand is growing rapidly. SINOPEC, as a biggest petrochemical manufacturer and supplier in the region, is capturing market opportunity and taking the advanced technology to build world-class chemical facilities. The co-operation of the project in Nanjing will obviously enhance both parties' existing strategic partnership which will contribute to the rapid growth of the Chinese economy.”