Saudi Arabia’s giant petrochemical coporation, SABIC, inked a deal with Chinese Shenhua Ningxia Coal Industry Group to build a petrochemical complex in China, Reuters reported. This came as a part of the Saudi kingdom’s ongoing strategy to diversify its operations geographically and to seek investments that would open up the company to new markets.
SABIC said in a statement that the petrochemical complex will be located in the Ningxia Hui Region of China, and would help the Saudi company diversify its feedstock sources, Trade Arabia wrote. The joint venture would benefit from its location in Ningxia and utilize locally available coal feedstocks to be supplied by SNCG.
However, no financial details or time frame for the project were given. SABIC said the companies would now work on getting approvals from Chinese authorities for the complex.