INEOS signs £5.7bn deal with Chinese Petroleum and Chemical Corporation

1 August 2022 | Eoin Redahan

Global petrochemical firm INEOS has signed three petrochemical deals with a combined value of £5.7bn ($7bn) with the China Petroleum and Chemical Corporation (SINOPEC).

The three deals could generate 7m tonnes of materials each year and a turnover of £8.16bn.

In the first of these deals, INEOS has taken a 50% stake in Shanghai SECCO Petrochemical Company Limited – an organisation that produces 4.2 million tonnes of petrochemical materials including ethylene, propylene, polyethylene, polypropylene, styrene, polystyrene, acrylonitrile, butadiene, benzene, and toluene.

In the second deal, INEOS and SINOPEC have inked a 50:50 joint venture to produce acrylonitrile butadiene styrene (ABS) using INEOS’ proprietary ABS Technology. This deal will kick-start the production of 1.2m tonnes per annum of the thermoplastic polymer, which is used in the automotive, electronics, household, healthcare, packaging, and leisure sectors. Half of this material will be produced at a new facility in Ningbo in east China from late 2023.

In the third deal, INEOS and SINOPEC will launch a 50:50 joint venture to build a high-density polyethylene (HDPE) plant in Tianjin with a 500,000 tonne capacity per year. As part of the joint venture, at least two more HDPE plants (of the same capacity) will be built to produce pipe. The Tianjin plant is expected to be in production from 2023.

INEOS hopes these three deals will help cement the company’s presence in the world’s fastest growing market. Jim Ratcliffe, Chairman and CEO INEOS, said: ‘These agreements significantly reshape INEOS’ petrochemical production and technology in China.

‘We are pleased to make these major investments with SINOPEC in areas that provide the best growth opportunities for both companies. Both parties recognise the potential for closer collaboration across a number of other areas as we look ahead.’

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