BASF, SINOPEC Sign China Steam-Cracker Agreement
29 October 2018 - 6:54PM
Dow Jones News
By Nathan Allen
BASF SE (BAS.XE) said Monday that it has signed a memorandum of
understanding with SINOPEC Shanghai Petrochemical Co. (600688.SH)
to build a second steam cracker in the Chinese city of Nanjing.
A joint pre-feasibility study for the cracker, which would have
the capacity to produce 1 million tons of ethylene a year, will be
concluded by the end of 2018, BASF said.
BASF and SINOPEC's existing joint venture, BASF-YPC, will cover
50% of the investment, while SINOPEC Yangtzi Petrochemical will
contribute the remaining 50%.
The cracker will allow the companies to expand capacity of
upstream and downstream chemicals at the Nanjing site, which
currently produces around 3 million tons a year of chemicals and
polymers for the Chinese market.
BASF has been taking advantage of China's policy to relax
restrictions on foreign investment in the chemicals sector to
expand its foothold in the country.
In July, it said it was considering a $10 billion investment in
a chemical production site in Guangdong Province.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
October 29, 2018 03:39 ET (07:39 GMT)
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