Saudi Basic Industries closes $3bn China petrochemical deal

Saudi Basic Industries Corporation (SABIC) received final approval from the Chinese government on Saturday to build a US$3 billion (Dh11bn) petrochemical complex in China, offering it a major foothold in the world’s fastest-growing chemicals market.

SABIC will establish a 50-50 joint venture with Sinopec, the Chinese national oil company, to build a plastics and chemicals complex in Tianjin, near Beijing, that will produce 3.2 million tonnes of products when it is completed in September, the company said in a statement.

The plant will be SABIC’s first major manufacturing centre in China, and is a key link in the company’s aim to become one of the world’s top three chemical companies by 2020. It is now the largest publicly traded firm in the Middle East.