The three landmark agreements are expected to generate a combined turnover of around USD 10bn from 7 million tonnes of capacity. The agreements will significantly reshape INEOS’ petrochemicals production and technology in China.
Firstly, INEOS has agreed to acquire a 50% stake in Shanghai SECCO Petrochemical Company Limited (SECCO). SECCO currently has a production capacity of 4.2 million tonnes of petrochemicals.
Secondly, INEOS has agreed to establish a new 50:50 joint venture with SINOPEC with the intent to build a production capacity of up to 1.2 million tonnes of ABS, to meet rapidly growing demand in China.
The third agreement will see INEOS and SINOPEC also establish a 50:50 joint venture to build a new 500ktpa HDPE plant in Tianjin. In addition, INEOS and SINOPEC shall build at least two additional 500ktpa HDPE plants in the future to produce INEOS pipe grade under license. The Tianjin plant is expected to be onstream by the end of 2023.