SABIC Eyes 30-50% Stake in Rongsheng New Materials Project

The deal would give SABIC access to Rongsheng's low-cost integrated production base in eastern China, while Rongsheng would gain SABIC's technology and global customer network. The companies said the partnership would accelerate the introduction of new materials into high-end markets including new energy and electronics.

The Jintang project targets specialty materials that China still imports in large volumes, the companies said. The petrochemical industry's shift toward higher-value products is part of a broader trend in commodities analysis.

Rongsheng's stock rose on the Shenzhen exchange after the announcement. The company did not disclose the size of the investment or a timeline for the FID.

The collaboration comes as Middle Eastern petrochemical producers seek to expand in China, the world's largest chemicals market. Saudi Aramco, SABIC's parent, has pursued similar partnerships with Chinese refiners. SABIC already operates a polycarbonate plant in Shanghai.

The Jintang project would be one of the largest new materials investments in China if it reaches FID. Both companies have strong balance sheets, though Rongsheng carries debt from its earlier expansion. The partnership could help de-risk the project by sharing capital costs and technology.

For SABIC, the deal offers a way to grow in Asia without building a greenfield plant. For Rongsheng, it provides a route into higher-value products that command premium pricing. No date has been set for the final investment decision.