On the evening of July 16, private refining and chemical giant Rongsheng Petrochemical announced that the company and its wholly-owned subsidiary Rongsheng New Materials (Zhoushan) Co., Ltd. plan to sign a "Project Development Agreement for a New Project" with global diversified chemical giant Saudi Basic Industries Corporation (SABIC). Under the agreement, SABIC plans to acquire no less than 30% and no more than 50% of the equity in Rongsheng New Materials.
Public information shows that the Jintang New Materials project has a total estimated investment of RMB 67.5 billion. Upon completion, the project is expected to generate annual operating revenue of nearly RMB 86.9 billion and average annual net profit of RMB 15.46 billion. Market analysts estimate that SABIC's total investment could reach no less than RMB 33 billion.
The Jintang New Materials project is positioned in the high-end new materials sector, focusing on high-performance resins, biodegradable plastics, specialty polyesters and high-end fibers. The project aims to enhance the self-sufficiency of advanced chemical materials and precisely meet the growing market demand from key downstream industries in China and Asia, including new energy, electronics and electrical equipment, and high-end packaging.
Rongsheng Petrochemical has deep ties with Middle Eastern capital. As early as 2023, Saudi Aramco acquired 10% of Rongsheng Petrochemical's shares at RMB 24.3 per share, a transaction worth RMB 24.6 billion with an 88% premium. Saudi Aramco Overseas Company is currently the second-largest shareholder of Rongsheng Petrochemical. In January this year, the two sides were also in discussions regarding Rongsheng Petrochemical's acquisition of 50% of Saudi Aramco's Jubail Refining Company.
SABIC's strategic investment in the Jintang New Materials project marks another deep alignment between Middle Eastern capital and China's private refining and chemical leader. Since SABIC was acquired by Saudi Aramco in 2020 for $69.1 billion for 70% of its equity, it has realized $2.08 billion in synergy value. SABIC employs over 26,000 people worldwide and holds more than 10,700 patents.
The partnership comes at a time of strong performance for Rongsheng Petrochemical. On July 14, the company released its earnings forecast, projecting first-half 2026 net profit attributable to shareholders of RMB 5 billion to RMB 5.2 billion, a year-on-year increase of 730.45% to 763.67%. On July 9, the company's 2026 employee stock ownership plan completed non-trading transfer, with 1,404 core employees fully subscribing RMB 1.7 billion to purchase company shares at RMB 11.11 per share.
Rongsheng Petrochemical's deep collaboration with global materials leader SABIC in the high-end new materials sector marks the company's accelerated transformation from a traditional chemical enterprise to an advanced materials company with long-term growth capabilities.
