Sinopec Zhenhai Refining & Chemical Company (ZRCC), a subsidiary of China's Sinopec Corp., one of the world's giants in energy and chemical industries, is gearing up to restart production at Line 1 of Monoethylene Glycol (MEG) in Ningbo, located in Zhejiang Province, China. This resumption of operations is scheduled for early November, following a planned maintenance shutdown that commenced on October 18. The MEG facility at this plant boasts an annual production capacity of 650 thousand tons.

Notably, this isn't the first significant development related to Sinopec ZRCC's MEG production in Ningbo. Previously, the company commissioned a brand-new MEG plant in the same region during the first half of January 2021, with an impressive annual capacity of more than 700 thousand tons. The addition of this plant marked a substantial expansion of their MEG production capabilities.

Monoethylene Glycol (MEG) holds a crucial role as one of the primary raw materials used in the manufacturing of polyethylene terephthalate (PET). This versatile material finds widespread application in the production of various products, including beverage bottles, polyester fibers, and various plastic containers.

A glance at the market statistics for the year reveals a notable surge in the estimated consumption of PET from January to August. This period recorded a significant increase in PET consumption, as compared to the same timeframe in the preceding year. This indicates the strong demand for PET-based products, underlining the importance of a stable and efficient MEG supply.

Sinopec Corp., the parent company of ZRCC, ranks among the world's leading integrated energy and chemical corporations. The diverse scope of Sinopec Corp.'s operations encompasses oil and gas exploration, production, and transportation, oil refining, petrochemical production, the manufacture of mineral fertilizers, and a range of other chemical products. This comprehensive presence positions Sinopec Corp. as the second-largest entity globally in terms of refining capacity, and the fourth largest concerning ethylene production capacity. Their significant contributions span various sectors of the energy and chemical industries.

The planned restart of Line 1 of MEG production at the Ningbo facility represents a strategic move by Sinopec ZRCC to ensure the consistent supply of this critical raw material, essential for PET production. With the surge in demand for PET-based products seen this year, securing a stable MEG supply is vital. The forthcoming resumption of operations in early November signifies the company's commitment to meeting these demands and maintaining their role as a significant player in the petrochemical industry.

Moreover, Sinopec ZRCC's previous milestone, the commissioning of a substantial MEG plant in Ningbo in January 2021, demonstrated their dedication to expanding production capacities. This capacity expansion aligns with their aim to remain competitive and responsive to the evolving market dynamics.