INEOS and SINOPEC sign Joint Venture agreement for a brand new petrochemicals complex in Tianjin, China
As announced (today) INEOS and SINOPEC have signed a fourth joint venture partnership in China (press release attached). This agreement sees INEOS acquire a 50% share in the Tianjin Nangang Ethylene Project, which is currently under construction by SINOPEC and is expected to be on-stream by the end of 2023. The cracker complex will include a 1.2 mtpa cracker, and 12 derivative plants, including a 300ktpa ABS (Acrylonitrile Butadiene Styrene) plant and 500ktpa HDPE (High-Density Polyethylene) plant using INEOS technology as announced in July.
To help answer questions, the impact on the IGH and Quattro finance groups is as follows:
INEOS Group Holdings
The acquisition of the 50% share in the Tianjin Nangang Ethylene Project is being made by a newly formed subsidiary of INEOS Group Holdings SA (together with its subsidiaries, “INEOS Group”). The majority of the construction cost is expected to be funded through project financing and, as a result, the approximate purchase price of the equity is expected to be RMB 5 billion, to be paid on completion of the project. The complex includes the first of the 500ktpa HDPE (High-Density Polyethylene) plants announced by INEOS and SINOPEC in July.
INEOS Quattro
The Tianjin Nangang Ethylene Project will contain a new 300ktpa ABS (Acrylonitrile Butadiene Styrene) plant which will be the second of the plants previously announced in July and will be owned by a new joint venture company established between INEOS Quattro and Sinopec. The net investment of Quattro in this project is expected to be approximately RMB 500 million, to be paid on completion of the project.
For further information, please contact:
INEOS Group Holdings Peter.williams@ineos.com
INEOS Quattro: dirk.arhelger@ineos.com