Published on October 8, 2013

INEOS Phenol and Sinopec Yangzi Petrochemical Company (Sinopec YPC) have decided to establish a petrochemical plant in China. The National Development and Reform Commission (NDRC) recently gave approval for this petrochemical plant, which is expected to produce 650,000 tonne phenol and acetone and 550,000 tonne cumene. The facility will have a production capacity of 400,000 tonnes of phenol and 250,000 tonnes of acetone. This ground-breaking project will be the largest phenol and acetone plant in China. It is also INEOS's largest investment in China.
The 1.2 million tonne development to be built in Nanjing is scheduled to be completed and operational by 2016.
INEOS and Sinopec YPC will be equal partners in this joint venture. The two firms have made a total investment of RMB 3.15 billion (0.5 billion dollars) and the project is expected to generate yearly sales revenue of approximately RMB 4.9 billion (0.8 billion dollars).
The plant received regulatory approval by NRDC  in August. It was also approved by the Jiangsu Province and Nanjing Municipal Government. Thus, this initiative  enjoys the complete support of national as well as local institutions.
Harry Deans, CEO of INEOS Phenol, said, "I am extremely pleased with the progress we have made over the summer which now opens the way for us to build the largest phenol facility in China. Working together with Sinopec YPC we combine a strong, local partner with INEOS's phenol technology. When completed we will have access to one of the world's fastest growing markets, and this will bring considerable value to our customers. This really is a mutually beneficial partnership that is an important development for INEOS Phenol and for INEOS in China."
Sinopec's local raw material advantages along with cumene technology and INEOS's proprietary technology. Being INEOS's largest ever capital investment in China, the company hopes that this plant will open new markets and excellent opportunities for them.
The plant will be built at the centre of China's biggest market for acetone and phenol- Nanjing of Jiangsu Province. Once it commences commercial operations, the plant will strengthen and cater to the phenol and acetone derivatives industry- the largest chemical market in Eastern China. Mr. Wang Jingyi, chairman of YPC, said, "I am pleased to see the establishment of this important Joint Venture. I strongly believe this new company presents significant value to both companies and their customers in China. This partnership is consistent with the strategic industrial reform in the Nanjing area, and is consistent with Sinopec's strategic focus on integration and growth, putting us in a strong position to meet growing demand for downstream petrochemical products in the region."
This project will mean an enhanced position for INEOS Phenol in the global market and the only company with access to global manufacturing capability, producing phenol and acetone in Asia, Europe and the U.S. Sinopec is already the leading producer of phenol and acetone in China. This project will further boost their leading position. Thus, this project will be a milestone for both the firms.