Industry News

BP and Sinopec to Sign a Joint Venture Contract for their Nanjing Acetic Acid Plant

Published on 2005-03-18. Author : SpecialChem

BP and Sinopec announced in Beijing that they had signed a joint venture contract to build a 500,000 tonne per year acetic acid plant in Nanjing, Jiangsu province.

Located in Nanjing, at the heart of the Yangtzi Delta - one of the most dynamic regions in economic development in China, this world-scale joint venture is expected to be on stream in the second half of 2007. The plant will incorporate BP's world leading CATIVA® technology and the equity split between BP and Sinopec is 50:50. The Sinopec investment will take place through the Yangtzi Petrochemical Company, a majority owned Sinopec Corporation subsidiary.

Lord Browne, group chief executive of BP plc. said: "Working together, Sinopec and BP have demonstrated their capability to deliver world class investment opportunities at the world class standards to supply the rapidly expanding petrochemicals market in China. Our joint investment in a new acetic acid plant serves as a further evidence of BP's long term commitment to China and our strategic partnership with Sinopec."

"Building on the success of YARACO and SECCO, this investment demonstrated once again BP's strong commitment to build a material presence in China, the most important emerging chemicals market in the world. The use of BP's world-leading CATIVA® technology, and the logistic advantages Sinopec brings in East China will make this a very competitive source of acetic acid," Lord Browne continued.

Mr. Wang Jiming, President of Sinopec Corporation said: "The global petrochemical sector is on the up cycle and Chinese market demand is growing rapidly. SINOPEC, as a biggest petrochemical manufacturer and supplier in the region, is capturing market opportunity and taking the advanced technology to build world-class chemical facilities. The co-operation of the project in Nanjing will obviously enhance both parties' existing strategic partnership which will contribute to the rapid growth of the Chinese economy."

Notes to editors:

  • BP and Sinopec announced on 10th May 2004 that they had signed a heads of agreement in London for the joint venture in Nanjing, during the Chinese Premier Wen Jiao Bao's visit to the UK.
  • The Nanjing plant will become part of BP's high growth acetyls and aromatics petrochemicals business, retained in BP's Refining and Marketing business segment.
  • Acetic acid is used as an intermediate in a wide range of products including fibres, paints, adhesives, pharmaceuticals and printing inks. The plant will use methanol and carbon monoxide as a feedstock.
  • BP and Sinopec already operate the YARACO acetic acid joint venture in Chongqing, China. This plant's capacity is currently being expanded from 200,000 to 350,000 tonnes per annum. The investment in Nanjing will consolidate BP and Sinopec's leadership position in China's acetic acid market.

Source: BP

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