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April 14, 2014
Sumitomo acquires stake in CEPSA subsidiary in China
Sumitomo Corp. (Tokyo, Japan; www.sumitomocorp.co.jp
) and CEPSA (Madrid, Spain; www.cepsa.com
) have entered into an agreement for Sumitomo to acquire 25% of CEPSA’s subsidiary CEPSA Química China, until now 100% owned by CEPSA. Welcoming Sumitomo into the fold of the company's shareholding structure means that this business will give a boost to a petrochemical factory construction project in Shanghai, in which CEPSA has been involved since 2011. The resulting company will be a joint venture (JV), owned 75% by CEPSA and 25% by Sumitomo.
The plant that CEPSA is building in Shanghai through its subsidiary CEPSA Química China is currently undergoing the final phases of construction. Once complete, the facility will have the capacity to produce 250,000 metric tons per year (m.t./yr) of phenol, 150,000 m.t./yr of acetone and 360,000 m.t./yr of cumene. According to the company, this facility will make CEPSA the second largest producer of phenol in the world. This raw material is mainly used in the automotive and construction industries to manufacture plastics and phenolic resins.