China Petroleum & Chemical Corp (Sinopec), Asia's leading refiner, and Korea's SK Group have agreed to join hands for setting up 800,000 tons per year ethylene facility in Central China.
The two companies have inked a Memorandum of Understanding (MoU) on strategic cooperation which includes the proposal for joint investment in the ethylene project.
Pursuant to the MoU, the two firms would continue surveying new prospects of joint investment in the Wuhan ethylene project, Sinopec said.
The Chinese firm started constructing the petrochemical complex in central Chinese province of Wuhan towards close of 2007 with an estimated cost of US$ 2.88 billion to US$ 2.97 billion. However, in February this year, the Korean firm expressed interest to acquire a 35 percent stake in a joint venture with Sinopec.
This is not the first time that the two companies have come together in partnership, as in 2004 also, Sinopec and SK Group made a joint investment of US$ 26.5 million to construct a 60,000 tons per year specialized solvent oil facility in Shanghai. As stated by Sinopec, the said joint venture is operating smoothly at present.
Fibre2fashion News Desk - China
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