Sinopec agrees deals with Ineos, sells stake at Shanghai plant for 10.5 billion yuan

CHINA'S Sinopec announced a string of deals with UK-based chemical and energy group Ineos including the sale of a 50 per cent stake in Shanghai SECCO Petrochemical for 10.5 billion yuan (S$2.2 billion).

The Chinese oil and gas major also said it will acquire a 50 per cent stake for US$631 million in an Ineos-owned venture based in east China that produces ABS plastic used for making automotive parts and pipes.

On top of a 600,000 tonne per year ABS plant now under construction, the companies plan to add 2 more facilities each capable of producing of 300,000 tonnes a year, incorporating Ineos' technology, Sinopec said.

Separately, the 2 firms will set up a joint venture with equal equity in the northern Chinese city of Tianjin to manufacture high density polyethylene.

The new joint venture will have a registered capital of about 623 million yuan, Sinopec said. REUTERS