Sinopec and South Korea's SK Energy have signed an agreement to build a new JV ethylene plant in Wuhan.
The new plant will be able to process 800,000 tonnes of ethylene per year, SK Energy said in a statement. The deal was announced during the visit of South Korea's President Lee Myung-bak to China this week. Neither Sinopec nor SK Energy gave any more details about the joint venture, except that the Koreans will hold a 35 per cent stake.
Media reports suggest the project will cost USD2.12 bn, and that the new facility will start operations in 2011.
Earlier this week, Sinopec said it has received USD1.02 bn in subsidies from the Chinese government "to help offset losses in the refining business." In 2005, Sinopec was given USD1.17 bn in subsidies, and in 2006 USD639m.
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Sinopec and South Korea's SK Energy have signed an agreement to build a new JV ethylene plant in Wuhan.
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