South Korea’s SK Group has agreed to build a USD 1.1 billion petrochemicals complex in China jointly with China’s state-owned Sinopec and BP. SK, which signed a preliminary deal with Sinopec and BP said the complex will have the capacity to produce 200,000mt/year of butanediol, 600,000mt/year of acetic acid and 250,000mt/year of ammonia. The butanediol plant, which will cost Yuan 3.7 billion, will be built and run by a joint venture between SK and Sinopec. It will be the biggest plant in China producing butanediol to make spandex, synthetic leather and polyurathane. The acetic acid plant will be constructed and run by a joint venture between BP and Sinopec, while the ammonia plant will be built and run solely by Sinopec.
