BEIJING, June 5 China's top economic planner has
approved South Korea's SK Group taking a 35 percent stake in a
$2.7 billion petrochemical complex that state refiner Sinopec
Corp built in central China, a government statement
said on Wednesday.
China's National Development & Reform Commission has
approved SK's acquisition of a stake in the complex in Hubei
province that has a capacity of 800,000 tonnes per year (tpy) of
The plant is now a joint venture between the Chinese state
oil major and SK, with a 65-35 split, NDRC said on its website.
The two companies signed a preliminary deal in December 2011
to explore joint investment in the project. SK's investment cost
for the stake was not given.
Sinopec completed building the complex around the end of
2012 in the central Chinese city of Wuhan.
China imports about half its ethylene needs and is keen to
reduce that amount. It plans to add a total of about 7.5 million
tpy of ethylene capacity between 2011 and 2015.
Sinopec is the industry leader and produces about two-thirds
of China's ethylene, a key building block for petrochemicals
from plastics to rubber to fibre, and is widely used in the
construction, automobile and textile industries.
(Reporting by Chen Aizhu; Editing by Tom Hogue)