【Haichuan Chemical Salary News】Major news! SABIC is about to acquire a stake in Zhejiang Petrochemical

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Big news! SABIC to Invest in Zhejiang Petrochemicals Shanghai Chemical Innovation Port 1019 20:37 On October 18, at the World Oil Traders Conference held in Zhoushan, Abdulaziz M. Al-Judaimi, SABIC’s Global Senior Vice President, made a surprising announcement: SABIC will sign a comprehensive cooperation memorandum with Zhejiang Province to carry out joint efforts across the entire oil product industry chain. In short, Saudi Aramco has set its sights on Zhejiang Petrochemical, the flagship petrochemical project led by the emerging province of Zhejiang and representing China’s private-sector giants in this sector; it intends to include this project in its portfolio of petrochemical assets in China by acquiring a stake in it. At the World Oil Congress, Zhejiang Province ** entered into agreements with a number of companies from the Fortune 500 list as well as major multinational oil corporations, including Saudi Aramco. It is said that the way in which Saudi Aramco will cooperate with these private enterprises based in Zhejiang could be quite interesting: a small portion of the shares held by state-owned enterprises in this project will be sold off, while foreign shares from Saudi Aramco will be introduced in their place. Zhejiang Province and Zhoushan City have made great efforts to attract foreign investment and private enterprises in order to foster successful cooperation. However, Saudi Aramco has stated that the details of the final decision still require further due diligence and evaluation. Since its establishment in 2015, Zhejiang Petrochemical’s shareholding structure is as follows: Rongsheng Petrochemical holds 51% of the shares, Zhejiang Tongkun and Juhua Group each hold 20%, while Zhoushan Marine Comprehensive Development Investment Co., Ltd. holds 9%. It is regarded as a new type of joint venture with a mixed ownership structure, controlled by private enterprises with state-owned enterprises holding shares in it. The records show that there is an agreement for the comprehensive marine development investment in Zhoushan. It is reported that multinational oil giants such as Glencore and BP will establish close cooperation with Zhejiang Province in areas including oil trading and bonded ship supply. Reports suggest that the way in which Saudi Aramco will collaborate with private enterprises from Zhejiang province could be quite interesting: a small portion of the shares held by state-owned enterprises in this project will be sold off, while foreign shares owned by Saudi Aramco will be introduced in their place. Zhejiang Province and Zhoushan City have made great efforts to attract foreign investment and private enterprises in order to foster successful cooperation. However, Saudi Aramco has stated that the details of the final decision still require further due diligence and evaluation. Since its establishment in 2015, Zhejiang Petrochemical’s shareholding structure is as follows: Rongsheng Petrochemical holds 51% of the shares, Zhejiang Tongkun and Juhua Group each hold 20%, while Zhoushan Marine Comprehensive Development Investment Co., Ltd. holds 9%. It is regarded as a new type of joint venture with a mixed ownership structure, controlled by private enterprises with state-owned enterprises holding shares in it.