National Development and Reform Commission (NRDC) gives approval for the 650,000 tonne phenol/acetone and 550,000 tonne cumene facility to be built in Nanjing.
INEOS’ largest investment in China due to complete at the end of 2016.
INEOS Phenol and Sinopec Yangzi Petrochemical Company (Sinopec YPC) have today broken ground on the largest Phenol and Acetone plant to ever be built in China. The ground-breaking ceremony for the 1.2 million tonne development was held in Nanjing Chemical Industry Park (NCIP).
INEOS and Sinopec YPC have established a 50% / 50% joint venture company with a total investment of approximately $0.5bn (RMB3.15 bn) which will generate annual sales revenue of around $0.8 bn (RMB 4.9 bn). It is expected that the new plant will be completed and operational by the end of 2016.
The project achieved regulatory approval by National Development Reform Commission (NDRC) on the 27th August. In addition the Jiangsu Province and Nanjing Municipal Government gave the green light to progress the project and start building the plant.
The ground breaking ceremony was attended by Mr.Yang Weizhe, the CCP Secretary of Nanjing City; Mr.Ji Jianye, the Mayor of Nanjing City; Mr Li Chunguang, President of China Petroleum and Chemical Corporation; Mr.Wang Jingyi, Chairman and General Manager of YPC; Mr Harry Deans, CEO of INEOS Phenol and Mr.Brian Davidson, Shanghai Consulate General of UK. Other officers from local government also attended the ceremony.
The new Joint Venture partnership will benefit from Sinopec’s local feedstock advantages and cumene technology alongside INEOS’ proprietary phenol technology. The annual capacity of the new facility will be at least 400,000 tonnes of phenol and 250,000 tonnes of acetone. It will also include 550,000 tonnes/year of cumene capacity. Together, with associated infrastructure, the Joint Venture will be the largest capital investment ever undertaken by INEOS in China and opens new opportunities for the company to meet the needs of this rapidly growing market.
“I am extremely pleased with the progress we have made over the summer which now opens the way for us to build the largest Phenol facility in China. Working together with Sinopec YPC we combine a strong, local partner with INEOS’ phenol technology. When completed we will have access to one of the world’s fastest growing markets, and this will bring considerable value to our customers. This really is a mutually beneficial partnership that is an important development for INEOS Phenol and for INEOS in China,” said Harry Deans, CEO of INEOS Phenol.
“I am pleased to see the establishment of this important Joint Venture. I strongly believe this new company presents significant value to both companies and their customers in China. This partnership is consistent with the strategic industrial refiorm in the Nanjing area, and is consistent with Sinopec’s strategic focus on integration and growth, putting us in a strong position to meet growing demand for downstream petrochemical products, in the region,” said Mr Wang Jingyi, Chairman of YPC.
The location of the plant in Nanjing, Jiangsu Province places it at the centre of China's largest market for both phenol and acetone. Once completed, the plant will supply phenol/acetone to customers including on-site consumers. This integration will strengthen and underpin the phenol/acetone derivatives industry in what is the biggest chemical market in Eastern China. The Nanjing Chemicals Industrial Park provides an excellent location with convenient waterway, land and railway transportation conditions.
Following the completion of this project INEOS Phenol will further strengthen its leading position and will be the only company to have global manufacturing capability, with phenol and acetone production in Europe, the USA, and Asia, with sites in Germany, Belgium, and USA (Alabama). China is the world's fastest growing market for phenol and acetone and Sinopec is China's leading producer of phenol and acetone with three production sites in Shanghai, Beijing, and Tianjin.
Phenol and acetone are important organic chemical intermediates. They are widely used in the industries of phenolic resin, caprolactam, bisphenol A, salicylic acid, fibres, plastic, synthetic rubber, pharmaceuticals, agrochemical, dyes, coatings, leather, and epoxy resins.
ENDS
For further information contact:
Richard Longden – INEOS - Tel: +41 (0) 21 627 7063
Cheng Xuejie – YPC - Tel: +86 (25) 5778 4417
Note to editors:
INEOS Phenol, currently has a nameplate capacity of 1.9 million tonnes per annum of phenol and 1.1 million tonnes per annum of acetone a year. It has a turnover of around €3.9 billion and employs over 600 people worldwide. The company is the world's largest producer of Phenol and Acetone and the only manufacturer with production facilities both in Europe and America. It is expected that the production from the JV facility with Sinopec YPC will serve the growing market for phenol and acetone in China and will free capacity at INEOS’ European and US plants to meet growth in these regions. The completion of this new plant in China will increase INEOS Phenol’s overall annual capacity to over 2.3 million tonnes of phenol per annum and 1.4 million tonnes of acetone per annum
Sinopec Yangzi Petrochemical Company Limited (http://ypc.com.cn) (former name Yangzi Petrochemical Co., Ltd. which was established in September 1983) is a wholly-owned subsidiary under China Petroleum & Chemical Corporation. The Company is mainly engaged in refining crude oil, Ethylene & Aromatics production, producing and marketing hydrocarbon derivatives. At present, the Company operates more than 60 sets of large-scale petrochemical units, including 8 million t/a crude oil processing, 650 kt/a ethylene, 1.4 million t/a aromatics, 1.05 million t/a purified terephthalic acid (PTA), 870 kt/a plastics, 300 kt/a ethylene glycol and 210 kt/a butadiene and produces more than 9 million t/a products, covering over 60 varieties in 5 categories, i.e. polyolefin plastics, polyester feedstock, basic organic chemical raw materials, product oil, synthetic rubber. The Company is currently one of the largest suppliers of pure benzene, para-xylene, ortho-xylene, PTA, ethylene glycol, butadiene and ethylene oxide in China, with annual sales revenue of almost RMB 77 billion.