SABIC Partners With Fujian Government For Engineering Thermoplastics Plant

SABIC, under the Ministry of Energy's auspices, signed a potential investment agreement with the Fujian government on August 1 to establish an engineering thermoplastics compounding plant in Fujian Province, China. The signing ceremony took place at the Ministry of Energy in Riyadh and was attended by several dignitaries including Fujian Province Party Secretary Zhou Zuyi and SABIC CEO Abdulrahman Al-Fageeh.

The planned facility will be situated in the Gulei Port Economic Development Zone, Zhangzhou, Fujian. It aims to produce pelletized LEXAN™ Polycarbonate (PC) and CYCOLOY™ PC/ABS blends. These materials are intended for industries such as electrical and consumer electronics, automotive, solar energy, electrification, and 5G.

SABIC Executive Vice President for Polymers Sami Al-Osaimi and Deputy Director Ma Changjian of the Fujian Zhangzhou Gulei Port Economic Development Zone Administration Committee signed the agreement. This investment highlights SABIC’s commitment to providing innovative solutions to its local customers in China while reinforcing its presence in the Chinese market.

The new site will feature compounding lines, colour development capabilities, and advanced equipment. This will enable SABIC to collaborate with its customers and partners to develop new solutions for engineering plastics. The project is expected to create synergies with SABIC’s existing joint ventures – SINOPEC SABIC Tianjin Petrochemical Co. Ltd. (SSTPC) and SABIC FUJIAN Petrochemicals Co. Ltd. (SFPC).

Al-Fageeh stated: "This investment agreement marks another significant milestone for SABIC’s growth in China and 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 and serve this important strategic market with innovative and consistently high-quality material solutions. Building on this, we will continue to collaborate with our existing global and local partners and customers to grow together in China."

Expanding Footprint Across Greater China

Besides the planned engineering thermoplastics compounding plant, SABIC operates a Technology Center in Shanghai along with compounding plants in Guangzhou, Shanghai, and Chongqing. The company also has operations across 17 cities within Greater China.

SABIC plans to leverage its expanded footprint and continuous growth in China to enhance its manufacturing capabilities and supply chain strengths. This initiative aims not only at bolstering innovation-led development within China's chemical industry but also at contributing globally.

This investment underscores SABIC's efforts towards sustainable development within the chemical sector by meeting local demands for differentiated innovative solutions.

The agreement signifies a crucial step forward for SABIC’s expansion strategy within China, reflecting their ongoing confidence in investing within the region.

With inputs from SPA