Saudi Arabia’s Sabic, a global leader in diversified chemical companies, has signed an agreement on further cooperation with the Administration Committee of Guangzhou Nansha Development Zone.

Xie Ming, deputy director general of Administration Committee of Guangzhou Nansha Development Zone and Manoj Sohoni, director, Operations Manufacturing, Specialties, Asia, Sabic signed the memorandum of understanding (MoU).

According to the MoU, Sabic and Guangzhou Nansha Development Zone will jointly conduct feasibility assessments on Sabic’s future investment in Nansha.

Ren Xuefeng, deputy secretary of CPC Guangdong Committee and secretary of CPC Guangzhou Committee met with Yousef Abdullah Al-Benyan, Sabic vice chairman and CEO and Li Lei, vice president North Asia of Sabic.

Ren Xuefeng warmly welcomed Sabic’s high-level delegation’s visit to Guangzhou and expressed appreciation of Sabic’s contribution to Guangzhou’s economic development.

Al-Benyan expressed high praise of Guangzhou’s hosting of Fortune Global Forum, and emphasized Sabic’s long-term commitment in China.

“China is one of Sabic’s core strategic markets, and Sabic is committed as a partner to help elevate China’s sustainable development and inclusive growth,” he said.

“I’m very pleased to have the opportunity to come to Guangzhou and discuss our further investment in China, and reinforce Sabic’s development prospects here. Saudi Arabia and China arrived at a comprehensive strategic partnership at the beginning of last year, and the Saudi ‘Vision 2030’ is actively complementing the ‘Belt and Road’ initiative. Sabic hopes to contribute to Saudi-China’s economic exchanges through continuous investment in China.”

Signing the MoU was an important part of Sabic’s high-level delegation’s visit to China, which was led by Al-Benyan. As one of Sabic’s most important strategic markets, China contributes nearly 20 per cent of Sabic’s global sales revenue. According to China Petroleum and Chemical Industry Federation (CPCIF), China’s chemical industry reached $961.5 billion revenue from January to August 2017, which increased 14.2 per cent year-on-year.

The Chinese market has significant potential to continually maintain itself as a growth engine for Sabic’s global business development. Sabic’s investment in Guangzhou Nansha Development Zone started in 1994, with its Nansha plant enjoying a total investment of $248 million as of today.

The plant produces high quality engineering plastics and products which are extensively applied in various industrial and consumer sectors, and is now the largest Sabic compounding plant in Asia holding an important position in the industrial chain in China and even globally. Sabic also sets up its Greater China customer service center in Nansha, offering high-quality and efficient order consultation and management services to customers based in Hong Kong, Taiwan and Mainland China.

Guangzhou Nansha Development Zone has been a state-level pilot free trade zone since 2014 with approval from the State Council, and is also an important pivot on the 21st Century Maritime Silk Road and the frontier of a new round of national reform and opening-up. At present, Nansha Development Zone is going all out to develop high-end manufacturing, technical innovation and healthcare sectors, and it has become Sabic’s top choice for further potential investment in China.

Sabic entered Asia in the 1980s and gradually extended its foot print in China. Today, Sabic has a state-of-art Sabic Technology Center in Shanghai, three plants in Shanghai, Guangzhou and Chongqing respectively, a joint venture with Sinopec running a world-class petrochemical complex in Tianjin and operates in 14 cities across Greater China.

With the MoU signed, Sabic is expected to play a key role in Saudi “Vision 2030”‘s complementing of the “Belt and Road” initiative through continuous investment in China, and the promotion of Saudi-China economic exchange. – TradeArabia News Service