Industry News

Sinopec and BP Celebrate the Establishment of Nanjing Acetic Acid JV

Published on 2005-11-10. Author : SpecialChem

On November 3, 2005, Sinopec Corp. and BP held a ceremony at The Diaoyutai State Guest House to celebrate the establishment of BP YPC Acetyls Company (Nanjing) Ltd., an acetic acid joint venture between BP and Sinopec Corp.. At the ceremony, Lord Browne, Group Chief Executive of BP and Chen Tong Hai, Sinopec Corp. Chairman, unveiled the plague for the Joint Venture Company.

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 will build a 500,000 tonne per year acetic acid plant which is expected to be on stream in the 2nd half of 2007. The plant will incorporate BP's world leading Cativa® technology and the equity split between Sinopec Corp. and BP is 50:50. The Sinopec Corp. investment will take place through the Yangzi Petrochemical Company, a majority owned Sinopec Corp. subsidiary.

The establishment of the new joint venture serves as a further example of Sinopec Corp.'s and BP existing strategic partnership in petrochemicals and will contribute to the rapid growth of the Chinese economy by meeting domestic market growth demand. The use of BP's world-leading Cativa® technology and the logistic advantages Sinopec Corp. brings in East China will make the Nanjing acetic acid plant a very competitive source of acetic acid, further consolidating their leading position in China's acetic acid business.

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.

Sinopec Corp. and BP 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. In March 2005, the two companies signed the joint venture contract. Besides the new acetic acid joint venture in Nanjing, Sinopec Corp. and BP 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.

Source: Sinopec Corp.

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