Ineos acquisitions bolster petchem partnership with Sinopec

London - Ineos has acquired a 50% stake in Shanghai SECCO Petrochemical Co. Ltd (SECCO), a subsidiary of China Petroleum & Chemical Corp. (Sinopec), Ineos announced 28 Dec.

SECCO currently has a production capacity of 4.2 million tonnes of petrochemicals, including butadiene for the synthetic rubber industry.

Output from its 200-hectare facility at Shanghai Chemical Industry Park, also includes ethylene, propylene, polyethylene, polypropylene, styrene, polystyrene and acrylonitrile.

The acquisition is one of four significant petrochemical deals announced last year between Ineos and Sinopec.

These include a 50:50 ABS plastics joint venture based on Ineos technology – also completed 28 Dec.

The third and fourth deals are expected to complete in 2023: a joint venture to build a 500ktpa HDPE plant in Tianjin and Ineos’ acquisition of a 50% share in the 'Tianjin Nangang ethylene' project.

“These major investments with Sinopec [are] in areas that provide the best growth opportunities for both companies,” said Jim Ratcliffe, chairman and CEO of Ineos.

“Both parties recognise the potential for closer collaboration across a number of other areas as we look ahead,” added Ratcliffe.

For Sinopec, chairman Dr Ma Yongsheng added:“Driven by the dual goals of managing carbon emissions and the energy transition, the two parties will… expand further possibilities in the Chinese petrochemical market.”