BP to Invest in Chinese Petchems Firm

As reported on Rigzone on the 22nd of April 2020, original article here.

BP plc reported Tuesday that it has signed a strategic cooperation agreement with China Resources Chemical Innovative Materials Holdings Limited (CRC) to jointly explore opportunities to improve cooperation along the polyester value chain.

The supermajor also stated that it has agreed to invest in and become a shareholder of CRC, which is a major producer of polyethylene terephthalate (PET) plastic in China and a purified terephthalaic acid (PTA) customer of BP’s. According to BP, the companies under the newly signed deal will look to strengthen their cooperation on PTA sourcing, work together along the polyester value chain and seek other collaborative opportunities.

The polyester plastic PET is commonly applied in beverage and food packaging, and PTA is one of the key raw materials used to produce it, BP explained.

“BP and CRC already have a close and longstanding relationship and we look forward to building on it further,” Luis Sierra, CEO for BP’s Global Aromatics Unit, remarked in a written statement. “We can see opportunities to work together to streamline and increase collaboration along the polyester value chain, improving flexibility and efficiency and creating value.”

BP noted that China is home to the company’s largest PTA production site, which is located in Zhuhai, Guangdong province and boasts a capacity of 2.4 million tonnes per annum (mtpa). It also stated that CRC’s polyester production centers – based in Zhuhai and Changzhou, Jiangsu province – can manufacture 2.2 mtpa of PET.

“BP is CRC’s important strategic partner in the polyester value chain,” commented Zhu Zhenda, CRC managing director. “Through deepened cooperation, we anticipate effective integration of our resources, bringing advantages for both partners. We will work together to develop innovative technologies, new products and applications for our customers in future.”

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