INEOS and Sinopec YPC sign joint venture agreement
INEOS and Sinopec YPC have today signed the Joint Venture Agreement and Articles of Association forming a 50% / 50% Joint Venture Company to be based in Nanjing China.
The Joint Venture, which is to be called INEOS YPC Phenol (Nanjing) Company Ltd is set to build the largest Phenol Acetone plant in China, due to complete at the end of 2016.
This is INEOS’ largest investment in China and YPC’s eighth joint venture.
Phenol and Sinopec Yangzi Petrochemical Company (Sinopec YPC) have today signed the Joint Venture Agreement and the Articles of Association to form a 50/50 Joint Venture company.
The Joint Venture is to be called INEOS YPC Phenol (Nanjing) Company Ltd. It will have a total investment of approximately $0.5bn (RMB3.15 bn) and is expected to be operational by the end of 2016.
INEOS YPC Phenol (Nanjing) Company Ltd will now build the largest Phenol and Acetone plant in China. The plant will be based on INEOS’s proprietary phenol technology and Sinopec’s proprietary cumene technology. It will benefit from Sinopec’s local feedstock and personnel advantages and will generate annual sales revenue of around $0.8 bn (RMB 4.9 bn). It will promote the upgrading of the chemical industry in Nanjing.
Mr.Wang Jingyi, Chairman and General Manager of YPC, Mr Harry Deans, CEO of INEOS Phenol and Madam Wang Xia, Executive Deputy Director of NCIP Administrative Committee attended the signing Ceremony held in Nanjing.
“Establishing INEOS YPC Phenol (Nanjing) Company Ltd following the signing of the Joint Venture Agreement is the major step forwards for this important project. We are delighted to have Sinopec YPC as our long-term strategic partner as we build the largest Phenol facility in China. When completed this new world scale plant will bring considerable value to our customers in the region. The partnership is an important development for INEOS Phenol and for INEOS in China.” said Harry Deans, CEO of INEOS Phenol.
“I strongly believe this new Joint Venture with INEOS presents significant value to both companies in China. This partnership helps to progress Sinopec’s strategic focus on integration and growth, putting us in a strong position to meet growing demand for downstream petrochemical products, in the region,” said Mr Wang Jingyi, Chairman of YPC.
The annual capacity of the new plant will be at least 400,000 tonnes of phenol and 250,000 tonnes of acetone. It will also include 550,000 tonnes/year of cumene capacity. Together, with associated infrastructure, the Joint Venture will be the largest capital investment ever undertaken by INEOS in China and opens new opportunities for the company to meet the needs of this rapidly growing market.
The location of the plant in Nanjing, Jiangsu Province places it at the centre of China's largest market for both phenol and acetone. Once completed, the plant will supply phenol/acetone to customers including on-site consumers. This integration will strengthen and underpin the phenol/acetone derivatives industry in what is the biggest chemical market in Eastern China.
Following the completion of this project INEOS Phenol will further strengthen its leading position and will be the only company to have global manufacturing capability, with phenol and acetone production in Europe, the USA, and Asia, with sites in Germany, Belgium, and USA (Alabama). China is the world's fastest growing market for phenol and acetone and Sinopec is China's leading producer of phenol and acetone with three production sites in Shanghai, Beijing, and Tianjin.
Phenol and acetone are important organic chemical intermediates. They are widely used in the industries of phenolic resin, caprolactam, bisphenol A, salicylic acid, fibres, plastic, synthetic rubber, pharmaceuticals, agrochemical, dyes, coatings, leather, and epoxy resins.
ENDS
For further information contact:
Richard Longden – INEOS - Tel: +41 (0) 21 627 7063
Cheng Xuejie – YPC - Tel: +86 (25) 5778 4417
Note to editors:
INEOS Phenol, (http://www.ineosphenol.com) currently has a nameplate capacity of 1.9 million tonnes per annum of phenol and 1.1 million tonnes per annum of acetone a year. It has a turnover of around €3.9 billion and employs over 600 people worldwide. The company is the world's largest producer of Phenol and Acetone and the only manufacturer with production facilities both in Europe and America. It is expected that the production from the JV facility with Sinopec YPC will serve the growing market for phenol and acetone in China and will free capacity at INEOS’ European and US plants to meet growth in these regions. The completion of this new plant in China will increase INEOS Phenol’s overall annual capacity to over 2.3 million tonnes of phenol per annum and 1.4 million tonnes of acetone per annum.
Sinopec Yangzi Petrochemical Company Limited (http://ypc.com.cn) was established in September 1983. It is a wholly-owned subsidiary under China Petroleum & Chemical Corporation. The Company is mainly engaged in refining crude oil, Ethylene & Aromatics production, producing and marketing hydrocarbon derivatives. At present, the Company operates more than 49 sets of large-scale petrochemical units, including 9.5 million t/a refinery, 800 kt/a ethylene cracker, 1.4 million t/a aromatics complex, and produces high quality petrochemical products, covering over 60 varieties in 5 categories, i.e. polyolefin plastics, polyester feedstock, basic organic chemical raw materials, product oil, synthetic rubber. The Company is currently one of the important suppliers of pure benzene, para-xylene, ortho-xylene, PTA, ethylene glycol, butadiene and ethylene oxide in China, with annual sales revenue over RMB 70 billion.