SABIC to Take Up to 50% Stake in Rongsheng Petrochemical Unit

Rongsheng Petrochemical (002493.SZ) and Saudi Basic Industries Corporation (SABIC) signed a project development agreement for the Jintang New Materials Project. Under the deal, SABIC is evaluating a strategic equity investment of 30% to 50% in Rongsheng New Materials, the wholly owned subsidiary that will operate the project.

The agreement sets a cooperation framework for development activities and lays the groundwork for a final investment decision. Both sides said they expect the partnership to combine Rongsheng's integrated refining and petrochemical scale with SABIC's specialty materials technology.

Rongsheng Petrochemical operates the world's largest integrated refining and petrochemical complex, with total chemical production capacity exceeding 60 million tonnes. The company is the top global producer of paraxylene (PX) and purified terephthalic acid (PTA). Its capacities for polyethylene, polypropylene, PET, EVA, ABS, polycarbonate and rubber have long ranked among the highest worldwide.

SABIC's specialty materials business covers polycarbonate (LEXAN), polyphenylene ether (NORYL) and engineering thermoplastics (LNP). These products are used in electrical and electronics, automotive lightweighting and healthcare markets. The Saudi firm's global customer network and brand recognition could help Rongsheng introduce its own advanced materials into high-end markets.

The Jintang New Materials Project focuses on high-performance resins, biodegradable plastics, specialty polyesters and high-end fibers. Rongsheng said the project aims to strengthen China's independent supply of advanced chemical materials and meet demand from downstream sectors including new energy, electrical and electronics, and high-end packaging.