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March 11, 2013
Ineos and Sinopec form JV agreement for chemical complex in Nanjing
Ineos Phenol (www.ineosphenol.com) and Sinopec Yangzi Petrochemical Co. (Sinopec YPC) have today initialled joint venture (JV) agreements for the design, build and future operation of a 1.2-million metric ton (m.t.) 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 capacity of the new facility will be at least 400,000 m.t./yr of phenol and 250,000 m.t./yr of acetone making it the largest plant of its kind in China. The facility will also include 550,000 m.t./yr of cumene capacity. Together, with the corresponding infrastructure, the JV 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 center 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 U.S. 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 JV agreements are a major step towards the formation of the JV.