BP, Sinopec And Shanghai Petrochemical Form World-Scale Chinese Chemical Joint Venture
11-Dec-2001
BP, Sinopec and Shanghai Petrochemical Corporation (SPC) today held a celebratory
reception in Beijing to mark the Formation of the joint venture company that will build
a $2.7 billion ethylene cracker and chemical derivatives complex near Shanghai.
Shanghai Secco Petrochemical Company Ltd (SECCO) will build the world-scale
complex, expected to begin operation in 2005, at Shanghai Chemical Industry Park,
Caojing, near Shanghai. The formation of the company — owned by BP (50 per
cent), Sinopec Corporation (30 per cent) and SPC (20 per cent) — follows the final
approval for the joint venture by the Chinese authorities with the granting of a
business licence by the Administration of Industry and Commerce.
Speaking at the celebration in the Great Hall of the People, Byron Grote, BP's
Managing Director with responsibility for Asia and Chief Executive of BP's chemicals
businesses, said: "SECCO is the strongest confirmation of BP’s belief in China’s
future. It is larger than any other investment we have made in the country, one of
the largest-ever foreign investments in China and a long-term commitment which will
create enduring value and mutual advantage."
Wang Jiming, President of Sinopec Corp, said: "Sinopec has always actively sought
to strengthen and expand its co-operation with multi-national corporations, to
introduce first-class technology, advanced management skills and further improve
the competitiveness of the company.
"Following China's accession to the WTO, this project, as the central pillar of the
Shanghai chemical zone, will promote and lead economic development in Shanghai
and Eastern China and help bring China's petrochemical industry to a new level of
performance."
Graham Hunt, BP Chemicals China chief executive, paid tribute to the close
relationship and teamwork that has developed between the partners: "The SECCO
joint venture could not have been created without the continuing full support and
hard work of our partners and the strong support of Shanghai. It marks yet a further
deepening of our longstanding relationship with Sinopec. We are confident that this
teamwork will enable the start up of the complex on schedule in 2005."
The SECCO complex will comprise a 900,000 tonnes a year naphtha-fed ethylene
cracker and downstream derivative petrochemical plants, with combined
polyethylene, polypropylene and polystyrene production of more than 1 million
tonnes a year, and world-scale styrene, acrylonitrile and other olefins derivatives
units. Output will total almost 2.3 millions tonnes of product a year.
SECCO directors include John Morgan from BP, who will also act as the company's
president, and Liu Xunfeng from Sinopec, who will act as executive vice president
and project management team director. Principal SECCO offices are being
established in Shanghai. SECCO will now tender for design and construction contracts
with the aim of breaking ground in the first half of 2002.
SECCO’s manufacturing and marketing organization will serve the demands of the
growing east China market. BP’s leading technology and business processes
combined with Sinopec’s extensive petrochemicals experience will play a key role in
establishing a best-in-class enterprise.
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