Work began this week on a $6.3bn petrochemical plant in Zhangzhou, Fujian province, China. When complete in 2026, the factory is expected to produce 1.8 million tonnes of ethylene a year.
The project is a joint venture between Saudi Basic Industries Corporation (51%) and the Fujian Energy Petrochemical Group (49%). It’s the biggest single investment by a non-Chinese company in the history of Fujian, Xinhua reports.
Abdulrahman Al-Fageeh, the chief executive of Saudi Basic Industries, said the aim was to establish a petrochemical manufacturing presence in Asia.
China’s State Council estimates that this scheme has prompted a further $28bn in upstream and downstream investment – that is, facilities to supply the petrochemical plant and process the ethylene.
Ethylene is one of the most important petrochemical intermediates and is a feedstock for products such as food packaging, film, toys, food containers, bottles, pipes, antifreeze, carpets, insulation and houseware.
The Invest Fujian agency comments that the province has made petrochemicals a priority and has standardised construction of industrial parks.
China’s petrochemical industry is expanding rapidly. The State Council reports that there are 15 plants in operation and a further 12 are under construction.
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