On January 26, Sinopec and the international chemical giant LyondellBasell announced the signing of a joint venture agreement to establish a 50:50 equivalent joint venture to expand the production of propylene oxide (PO) and styrene (SM) in China. The joint venture will be named Ningbo Zhenhai Refining & Chemical Co., Ltd. Lyondell Basel New Materials Co., Ltd.

　　The two parties first announced the signing of a memorandum of cooperation in December 2019. According to the memorandum, the proposed joint venture will build a new propylene oxide (PO) and styrene monomer (SM) plant in Zhenhai, Ningbo, China to meet domestic market demand.

　　Yu Baocai, Senior Vice President of Sinopec, said, “The establishment of the new joint venture is not only consistent with the country’s policy of further opening up, but also an important step for Sinopec to deepen and expand international operations. We believe that the new joint venture can further drive the economy of Ningbo. High hopes are placed on development. Sinopec will continue to promote green industry upgrades and innovation and transformation during the "14th Five-Year Plan" period, and contribute to the continuous driving of economic growth in Zhejiang and East China, and even the development of China's chemical industry."

　　Leande Basel specializes in plastics, chemicals and oil refining. "Under the background of China's continuous economic growth, the demand for propylene oxide and styrene in the Chinese market will also increase." said Torkel Rhenman, executive vice president of Lyondell Basel, " We are very excited to take this joint venture to expand our partnership with Sinopec, so that we can better serve the Chinese market. The combination of Sinopec's excellent operating capabilities and LyondellBasell's technical strength will be a win-win guarantee. "

　　The proposed joint venture company will build a new PO/SM production facility in Zhenhai, Ningbo. The device adopts LyondellBasell’s PO/SM technology and can produce 275,000 tons of propylene oxide and 600,000 tons of styrene per year. It is expected to be completed and started up by the end of 2021. After completion, the products of the joint venture will be underwritten by both parties on an equal footing, which will greatly expand their participation in China's propylene oxide and styrene markets.

　　After review and approval by relevant government departments including anti-monopoly investigations, the joint venture will be formally established.

　　China Petroleum & Chemical Corporation is one of the largest upstream, midstream and downstream integrated energy and chemical companies in China. It is mainly engaged in oil and natural gas exploration and production, pipeline transportation, and sales; petroleum and petrochemical products, synthetic fibers, fertilizers, and other chemical products. Transport; R&D and application of scientific and technological information. At present, Sinopec is China's largest supplier of refined oil and petrochemical products, the second largest oil and gas producer, the world's largest refining company, the third largest chemical company, and the number of gas stations ranks second in the world. The company's sales in 2019 were RMB 2.970 billion, ranking second among the Fortune Global 500 companies in 2020.

　　Lyondell Basel is a global plastics, chemical and oil refining company headquartered in the Netherlands. In 2019, it ranked 316th in the Fortune 500. Its products enhance food safety through lightweight and flexible packaging, ensure clean water supply through tough, multi-functional pipelines, improve the safety, comfort and fuel efficiency of cars and trucks, and ensure the safety and functionality of electronic and electrical equipment.

　　Lyondell Basel has five wholly-owned modified material factories in Suzhou, Changshu, Dongguan, Nansha and Dalian. In recent years, LyondellBasell has continuously increased its investment in China, expanded its presence in China, and served the rapidly developing Chinese market.