MOSCOW (MRC) -- SunVic Chemical Holdings' Jiangsu Jurong Chemical (JJC) subsidiary, SunVic Asia Pacific Investments Holdings (SVAP) and Shenzhen Qianhai Gatsway Petrochemical have terminated a framework agreement, in which Shenzhen Qianhai would acquire a 100% equity interest in Jiangsu Jurong Petrochemicals (JJP) from JJC and SVAP, as per Apic-online.
The agreement was terminated due to financial con-straints of Shenzhen Qianhai, and because of an explosion last year in the chemical zone where JJP's plants are located in Yancheng City, China, which led to a government shutdown of the chemical zone.
The transaction, which had an aggregate cash consideration value of RMB 388-million, was to include a methyl tertiary butyl ether facility and a jetty at JJC's site in Xiangshui, China.
JJC holds a 69% interest in JJP, while SVAP, an associated company of SunVic Chemical Holdings, holds a 31% stake.
With the continued shutdown of the chemical zone, the management team of JJC doesn't expect to be able to dispose of JJP in the foreseeable future.
As MRC reported earlier, China's Sinopec has started operation of a 800,000 tons-per-year ethylene facility at its Zhanjiang refinery. The refinery, located in the southern Chinese coastal city of Zhanjiang, commenced operation of its 200,000 barrel per day crude oil refining units in June.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC