Sinopec and LyondellBasell to build PO/SM plant together

On January 26, China Petroleum & Chemical Corporation (Sinopec) and plastics, chemical and refining company LyondellBasell announced the signing of a joint venture agreement to establish a 50:50 reciprocal joint venture to expand the production of propylene oxide (PO) and styrene (SM) in China. The joint venture will be named Ningbo Zhenhai Refining & Chemical LyondellBasell New Materials Co.

The parties first announced the signing of a memorandum of cooperation in December 2019. The proposed joint venture will build a new PO/SM production unit in Zhenhai, Ningbo.The plant, which will use LyondellBasell's PO/SM technology, will be able to produce 275,000 tons of propylene oxide and 600,000 tons of styrene per year and is expected to be ready for start-up by the end of 2021.  Upon completion, the joint venture's products will be reciprocally underwritten by both parties to the joint venture, which will significantly expand their participation in the Chinese propylene oxide and styrene markets. The joint venture will be formally established after review and approval by relevant government agencies, including an anti-monopoly investigation.