PETROCHEMICALS Middle East confirms interest in China investments

Abstract

Led by China’s vice president, Xi Jinping, a delegation of top Chinese government and business officials visited the Middle East last week to sign agreements concerning the construction of petrochemical and plastics facilities in China. Saudi Basic Industries Corp. said it would boost its participation in a petrochemical complex already under construction in Tianjin and scheduled to open in 2009. SABIC owns half of the project through a 50-50 joint venture with Sinopec. When SABIC first announced its participation in January, the two sides expected that the project would cost $1.7 billion. The partners now plan to raise their investment to $2.5 billion to include addition of a polycarbonate unit. SABIC gained polycarbonate expertise when it acquired GE Plastics last fall for $11.6 billion. Just before the acquisition, GE had shelved plans to build a polycarbonate plant in China. In Qatar, the ruling emir’s heir apparent, Sheikh Tamim Bin Hamad Al-Thani, signed a letter ...