SABIC and Fujian Provincial Government Sign Potential Investment Agreement for Engineering Thermoplastics Compounding Plant

SABIC (Saudi Basic Industries Corporation), a leading global diversified chemical company, signed a potential investment agreement with the Fujian Provincial Government on August 1, under the auspices of the Saudi Ministry of Energy, to build an engineering thermoplastics compounding plant in Fujian Province.

The signing ceremony was attended by Zhou Zuyi, Secretary of the Fujian Provincial Party Committee, Ahmed Al-Zahrani, Assistant Minister of Development and Excellence of the Ministry of Energy, and Abdulrahman Al-Fageeh, CEO of SABIC. Sami Al-Osaimi, Executive Vice President of SABIC Polymers, and Ma Changjian, Deputy Director of the Management Committee of Gulei Development Zone, Zhangzhou City, Fujian Province, formally signed the agreement.

This new investment further demonstrates Saudi Basic Industries Corporation (SABIC)'s commitment to meeting the unique needs of local Chinese customers for differentiated and innovative solutions, while strengthening its roots in the Chinese market and contributing to the high-quality and sustainable development of the chemical industry.

Abdulrahman Al-Fageeh, CEO of SABIC, said: "This investment agreement is another important milestone in SABIC's development in China and reflects our continued confidence in investing in China. Through synergies with upstream and downstream partners, the project aims to strengthen our supply capabilities in composite products and serve this important strategic market with innovative and consistent high-quality material solutions. On this basis, we will continue to work with existing global and local partners and customers to grow together in China."

The planned compounding plant will be located in Gulei Port Economic Development Zone, Zhangzhou City, Fujian Province, and will mainly produce granular LEXAN™ polycarbonate (PC) and CYCOLOY PC/ABS blends for advanced materials that meet the needs of emerging industries such as electrical and consumer electronics, automobiles, and solar energy, electrification and 5G. The plant has compounding production lines and advanced equipment, and has color development capabilities, enabling SABIC to work with customers and partners to create new innovative solutions for engineering plastics.

In addition to the planned engineering thermoplastics compounding plant, SABIC also has a SABIC Technology Center in Shanghai, three compounding plants in Guangzhou, Shanghai and Chongqing, and operations in 17 cities in Greater China.

The new plant is also expected to create synergies with SABIC's two existing joint ventures, Sinopec Saudi Basic Industries Company (SSTPC) and Fujian Sinopec Petrochemical Company (SFPC), to provide differentiated solutions and products. With its expanding business scope and continued growth in China, SABIC will continue to leverage its advantages in manufacturing and supply, while helping to strengthen the innovation development of the chemical industry in China and around the world.