Ineos and Sinopec today signed a series of joint venture
agreements with a total value of approximately $7 billion. The three landmark agreements are expected to achieve a
combined annual capacity of 7 million tons and generate approximately $10
billion in annual sales. The partnership will reshape Ineos' production and technology
footprint in China's petrochemical industry.
Ineos will form a new 50:50 joint venture with Sinopec, aiming
to achieve 1.2 million tonnes of ABS capacity per year to meet China's rapidly
growing demand. The ABS project in Ningbo, with an annual capacity of 600,000 tons, is
currently being built by IneOS Benzencollar and is scheduled for mechanical
completion by the end of 2023, which will be part of the joint venture.
Ineos and Sinopec will jointly establish a new
500kt/a high density polyethylene (HDPE) project in Tianjin. In addition, Ineos and Sinopec will also build at least two more 500kt/a
high density polyethylene (HDPE) projects in the future, licensed to produce
Ineos pipe grade products. The Tianjin project is expected to be completed by the end
of 2023.