Saudi SABIC signs project development agreement with China's Rongsheng

The agreement grants the Saudi company 50% of the project.

"Al-Eqtisadiah" from Riyadh

Thursday, July 16, 2026 14:49 | 1 minute read

Saudi Basic Industries Corporation (SABIC) signed today, Thursday, a Project Development Agreement (PDA) with Rongsheng Petrochemical Limited and one of its wholly-owned subsidiaries, Rongsheng New Materials (Zhoushan), to jointly develop the "Jintang New Material" advanced materials project in Zhoushan, Zhejiang Province, China.

Under the agreement, SABIC and Rongsheng Petrochemical will work to evaluate the feasibility of a potential capital investment that grants SABIC up to a 50% stake in Rongsheng New Materials.

The project represents a strategic collaboration between two leading companies in the petrochemical sector.

The agreement establishes a framework for project development activities in preparation for a potential final investment decision.

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Faisal bin Mohammed Al-Faqeer, CEO and Executive Board Member of SABIC, said: "The agreement with Rongsheng Petrochemical reflects SABIC's vision for growth and expanding its global presence by adopting a strategic collaborative approach."

The "Jintang New Materials" project aims to enhance production capacities for advanced chemicals and meet the growing demand from key manufacturing industries in China and Asia.

The project is expected to leverage globally distinguished technologies, integrated manufacturing capabilities, and operational excellence, thereby enhancing competitiveness, supporting innovation, and contributing to long-term value for all parties.

Bloomberg had previously indicated that Zhejiang Petroleum and Chemical, a subsidiary of Rongsheng Petrochemical, plans to invest 19.6 billion yuan (about $2.9 billion) in a project, without naming the project.

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