Large chemical plant kicks off
( 2002-03-29 09:36) (1)
Construction of one of the largest petrochemical joint venture projects in the country -- and British Petroleum's (BP) largest project in China, kicked off in the Shanghai Chemical Industrial Park on Thursday.
The developer of the project is the Shanghai SECCO Petrochemical Co Ltd, a 50-30-20 equity joint venture by BP, China Petroleum and Chemical Corporation (Sinopec Corp) and the Shanghai Petrochemical Co Ltd (SPC).
The project is slated for completion and opening in the first half of 2005, with a total investment at US$2.748 billion.
The Shanghai SECCO 900ktpa Ethylene Joint Venture Cracker Project consists of world-scale, state-of-the-art cracker facilities, which are commonly used in chemical plants.
According to the general design of the project, the facilities will annually produce 2.28 million tons of high-grade petrochemical products, targeted mostly to meet domestic demand and partly for the international market.
Li Yizhong, chairman of Sinopec Corp, referred to the Shanghai project as an important move in his corporation's development strategy.
"When the project is put into operation, it will give a strong impetus to bring the overall competitiveness of Sinopec Corp to a new high, sharpen its international competitive edges and accelerate the growth of China's petrochemical industry."
The country's actual output of ethylene reaching 4.7 million tons last year.
However, China consumed 8.6 million tons of ethylene, a crucial material for the chemical industry, which implies that around 45 per cent of the consumption was exported.
"We are sparing no efforts to increase the output via old facilities innovation and co-operation with foreign giants," Li said.
Byron Grote, BP global Managing Director and chief executive officer of BP Chemicals, said that the Shanghai SECCO Project is currently BP's largest project in Chin.
"We are proud and confident with the future of the project," said Grote.
So far, eyeing the huge market potential in China and its foreign partner's technology and management advantages, the two sides are negotiating for more co-operation in other fields.
Sources from the joint venture said that the letter of intent for the project was signed in October 1996 in Britain.
Last September, the contract was approved by the Ministry of Foreign Trade and Economic Co-operation.
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