MOSCOW (MRC) - ChemChina plans to invest CNY50 billion in the construction of a cracking unit in Dongying, Shandong Province, Polymerupdate reports citing a market source.
The project is in a preliminary stage and no details were available at the moment. The company is also awaiting project approval from the government of Shandong.
If approved by the government, ChemChina will build its first cracker.
As previously reported, ChemChina is in talks with another major chemical company, Sinochem, on mergers and acquisitions.
It was previously noted that Beijing sees the deal between Sinochem and ChemChina as a plan to rationalize and consolidate its disparate state-owned enterprises, with the result that major market leaders will be created.
It was previously reported that for the first time ChemChina plans to acquire the Sinochem Group became known in October 2016.
Ethylene and propylene are the main raw materials for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
China National Chemical Corporation, commonly known as ChemChina, is a Chinese state-owned chemical company in the product segments of agrochemicals, rubber products, chemical materials and specialty chemicals, industrial equipment, and petrochemical processing.
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