INEOS and Sinopec initial agreements to form 1.2 million tonne cumene, phenol and acetone Joint Venture

INEOS Phenol and Sinopec Yangzi Petrochemical Company (Sinopec YPC) have today initialled joint venture agreements for the design, build and future operation of a 1.2million tonne cumene, phenol and acetone complex at the Nanjing Chemical Industrial Park in Jiangsu Province, China. It is currently expected that the project will be completed by the end of 2015.

The partnership will benefit from Sinopec’s local feedstock advantages and cumene technology and INEOS’ proprietary phenol technology. The annual capacity of the new facility will be at least 400,000 tonnes of phenol and 250,000 tonnes of acetone making it the largest plant of its kind in China. The facility will also include 550,000 tonnes/year of cumene capacity. Together, with the corresponding infrastructure, the Joint Venture will be the largest capital investment ever undertaken by INEOS in China and opens new opportunities for the company to meet the needs of the rapidly growing market.

The location of the plant in Nanjing, Jiangsu Province places it at the centre of China's largest market for both phenol and acetone. Following the completion of this project INEOS Phenol will further strengthen its leading position and will be the only company to have global manufacturing capability, with phenol and acetone production in Europe, the USA, and Asia.

In November 2012 INEOS Phenol and Sinopec YPC received approval of their Environmental Impact Assessment from Environmental Protection Bureau of Jiangsu Province to proceed with the proposed project to build the facility. The Ministry agreed that the proposed project is in accordance with national and local industrial policy in the Jiangsu Province. The approval of the EIA followed a detailed analysis and evaluation of the overall safety, health and environmental impact of the project. This EIA approval and the initialled joint venture agreements are a major step towards the formation of the Joint Venture.

“The project is the largest capital investment ever undertaken by INEOS and will establish the largest Phenol facility in China. This mutually beneficial partnership is an important development for INEOS Phenol and for INEOS in China. Combining a strong, local partner like Sinopec YPC with our phenol technology and access to the market brings considerable value to our business and to our customers,” said Harry Deans, CEO of INEOS Phenol.

“I am pleased that we have agreed and initialled the Joint Venture with INEOS. This important partnership is consistent with Sinopec’s strategic focus on integration and growth. Our established presence, competitive edge and cumene technology, combined with INEOS’ leading phenol technology, puts us in a strong position to meet growing demand for downstream petrochemical products, in the region.” said Dr Ma Qiulin, CEO of Sinopec YPC.

INEOS Phenol is the world’s largest manufacturer of phenol and acetone with sites in Germany, Belgium, and USA (Alabama). China is the world's fastest growing market for phenol and acetone and Sinopec is China's leading producer of phenol and acetone with three production sites in Shanghai, Beijing, and Tianjin.

Source: INEOS