In a major move, Petrochemical Industries Company (PIC), a leading producer of aromatics, fertilizers, and polymers such as Propylene, Polypropylene, and Polyethylene, and a subsidiary of Kuwait Petroleum Corporation (KPC), has formed a strategic partnership with Wanhua Chemical Group Co., Ltd. Under the terms of an Equity Subscription Agreement (ESA), PIC will acquire a 25% stake in selected petrochemical assets at Wanhua’s facility in Yantai, China.

The agreement was finalized during an official ceremony in Yantai, where Nadia Al Hajji, CEO of PIC, and Kou Guangwu, President of Wanhua Chemical, were joined by prominent leaders, including Shaikh Nawaf Al-Sabah, Deputy Chairman and CEO of KPC, and Liao Zengtai, Chairman of Wanhua Chemical. The event also saw the attendance of senior officials from both companies, alongside a high-level delegation from Kuwait.

This deal represents a major expansion of Kuwait’s presence in China and is the largest petrochemical investment by KPC in the region. Shaikh Nawaf Al-Sabah highlighted that this agreement marks a significant milestone in the strong trade relations between Kuwait and China. "This partnership reflects our commitment to turning traditional supply agreements into long-term, value-driven collaborations," he said. “It’s a significant step in our strategy to transform hydrocarbon relationships into industrial growth and innovation.”

Wanhua Chemical’s Chairman Liao Zengtai reflected on the companies' long history of cooperation, which dates back to 2013. “Our relationship has been built on shared values and complementary strengths,” Liao noted. “This new venture strengthens that bond, supporting the broader development of the petrochemical industry in Yantai and beyond.”

For PIC, this partnership underscores the company’s focus on creating long-term value through strategic investments in the global petrochemical market. CEO Nadia Al Hajji stressed the collaboration’s importance for driving growth, innovation, and mutual benefit. “This partnership is a cornerstone in PIC’s continued growth in Asia and beyond. I am deeply grateful to everyone who made this moment possible,” she said.

Kou Guangwu, President of Wanhua, emphasized the importance of intelligent manufacturing and green technologies in the venture, noting that the partnership will leverage both companies' expertise across the petrochemical value chain. “This agreement marks a new phase in Wanhua’s collaboration with Kuwaiti petroleum entities and reflects our mutual goals of resource sharing and industry rejuvenation,” he said.

The signing ceremony also saw the involvement of Citigroup Global Markets Limited, which served as the exclusive financial advisor to PIC, and Ashurst LLP, which provided legal counsel. Before the signing, officials from KPC, PIC, and the Kuwait Embassy, along with Wanhua Chemical representatives, toured Wanhua’s Yantai Industrial Park to discuss further cooperation on intelligent manufacturing systems and green technologies.

This deal sets the stage for further collaboration between PIC and Wanhua Chemical, reinforcing their shared vision for industrial growth and innovation in the petrochemical sector.