In a groundbreaking development, the Saudi Basic Industries Corporation (SABIC) has officially declared its final investment decision (FID) to embark on the development of a state-of-the-art petrochemical complex in Fujian, China, with an impressive investment of $6.4 billion.

This ambitious project is set to be realized through a joint venture between SABIC Industrial Investment Company (SIIC), a wholly-owned subsidiary of SABIC, and Fujian Fuhua Gulei Petrochemical Company.

Within this joint venture framework, SIIC will maintain a 51 percent stake in the project, underscoring SABIC's substantial commitment, while the remaining 49 percent will be owned by Fujian Fuhua Gulei.

The envisaged petrochemical complex is designed to house a mixed-feed steam cracker boasting an anticipated annual ethylene maximum capacity reaching up to 1.8 million tonnes. Setting a new benchmark, the project will incorporate cutting-edge downstream facilities encompassing ethylene glycols, polyethylene, polypropylene, polycarbonate, and various other units leveraging state-of-the-art technologies. Impressively, at least nine proprietary technologies developed by SABIC will be integral to the production processes.

SABIC anticipates initiating the construction phase of this transformative project in the first half of 2024. Following this, the preparation for commissioning and start-up is slated to commence in the second half of 2026, extending over a six-month period.

To finance this colossal endeavor, SABIC plans to leverage a combination of debt and its robust cash flows. This strategic financing approach underscores SABIC's commitment to ensuring the successful realization of the petrochemical complex, a project poised to significantly contribute to the company's global standing.

The origins of this monumental venture trace back to September 2018 when SABIC formalized a memorandum of understanding with the Fujian Provincial Government in China. This initial agreement laid the groundwork for the collaborative development of a cutting-edge petrochemical complex in Fujian, marking a crucial step toward the realization of SABIC's vision in the region.

As SABIC takes this momentous leap in establishing a world-class petrochemical complex in Fujian, the significance of this endeavor is underscored by the incorporation of advanced technologies, emphasizing SABIC's commitment to innovation and industry leadership. The joint venture structure further exemplifies SABIC's strategic approach to collaboration, leveraging local expertise and resources.

SABIC's final investment decision to embark on a $6.4 billion petrochemical complex in Fujian, China, marks a watershed moment in the global petrochemical landscape. The project's comprehensive scope, cutting-edge technologies, and strategic financing approach position it as a flagship initiative for SABIC. As construction is set to commence, the industry eagerly anticipates the transformative impact of this petrochemical complex, not only on SABIC's global footprint but also on the broader dynamics of the petrochemical sector.