Saudi Basic Industries Cooperation set to boost investments in China

RIYADH: Saudi Basic Industries Corp. (SABIC), the Saudi leading petrochemical company, has signed a memorandum of understating (MoU) to boost its investments in the People’s Republic of China.
SABIC signed the MoU with the Guangzhou Nansha Development Zone Committee of China on Friday. The deal is also meant to enhance joint cooperation between the two parties, the Saudi Press Agency (SPA) said.
The deal was signed by Xie Ming, the deputy director of the Guangzhou Nansha Development Zone Administration Committee, and SABIC was represented by its director of operations for manufacturing and specialized products in Asia, Manoj Sohoni.
According to the MoU, SABIC will conduct feasibility studies for its future investments in the Guangzhou Nansha Development Zone.
Prior to the signing of the memo, Deputy Chairman and CEO of SABIC Yousef Al-Benyan met with Chinese officials in Guanzhou who expressed their appreciation to SABIC for its contribution to the development of their region.
Al-Benyan expressed SABIC’s commitment to working in China, and added that the Chinese market is considered a strategic market for SABIC.
In its capacity as a partner, SABIC will help enhance sustainable development and comprehensive growth in China, Al-Benyan said.
He said he was happy to come to China and discuss investment opportunities. He also expressed hope that SABIC will contribute to raise the volume of trade exchange between the two countries through continued investments in China.
Chinese markets are reportedly contributing nearly 20 percent of SABIC’s total global sales.
According to the Chinese Federation of Petroleum and Chemical Industries, the volume of Chinese chemical industry hit $961.5 billion between January and August 2017, or an increase of 14.2 percent on a year-to-year basis while it remains an engine for growth and global business development for SABIC.
No comments were immediately available on the details of the deal or SABIC’s investment in the Chinese region from either SABIC or the Chinese Embassy in Riyadh.