SABIC signs potential investment deal to build plant in China’s Fujian

Saudi Basic Industries Corp. (SABIC) signed today, Aug. 6, under the auspices of the Saudi Ministry of Energy, a potential investment agreement with the Fujian government to build an engineering thermoplastics compounding plant in Fujian Province in China, the Saudi Press Agency (SPA) reported.

The new factory is in the Gulei Port Economic Development Zone, Zhangzhou City, Fujian Province. It will mainly produce pelletized LEXAN™ Polycarbonate (PC) and CYCOLOY™ PC/ABS blends.

These materials will be utilized in the manufacture of advanced materials designed specifically to meet the needs of broad industrial sectors such as electrical, consumer electronics, and automotive, and emerging sectors such as solar energy, electrification, and 5G. SABIC statement explained that the manufacturing site will include compounding lines, color development capabilities, and advanced equipment that will enable SABIC to work with its customers and partners to create new innovative solutions for engineering plastics.

The new plant is expected to contribute to creating aspects of cooperation with SABIC's two existing joint ventures in China - SINOPEC SABIC Tianjin Petrochemical Co. Ltd. (SSTPC) and SABIC FUJIAN Petrochemicals Co. Ltd. (SFPC) - to provide distinguished solutions and products.

SABIC operates a bundle of facilities in China, including a technology center in Shanghai, as well as three compounding plants in Guangzhou, Shanghai, and Chongqing, in addition to its operations in 17 cities across Greater China.

SABIC CEO, Abdulrahman Al-Fageeh, said: “This investment agreement reflects our continued confidence in investing in the country. By creating synergy with upstream and downstream partners, the project aims to strengthen our supply capability in compounding products.”