Petrochemical giant Saudi Basic Industries Corp (SABIC) has signed a memorandum of understanding to boost its investments in China.
The MoU was signed with the Guangzhou Nansha Development Zone Committee of China on Friday, according to state news agency SPA – a deal that is expected to enhance cooperation between the two parties.
As part of the agreement, SABIC will conduct feasibility studies for its future investments in the Guangzhou Nansha Development Zone.
On Thursday, Boomberg TV had reported that SABIC plans to spend $3bn-$10bn on acquisitions in the next five years – spread between the company’s business in petrochemicals, specialty chemicals and agri-nutrients.
CEO Yousef Abdullah Al Benyan told the channel in an interview: “Each of those business lines has a clear strategy from an organic point of view and acquisitions point of view. Especially on the specialty side and petchem side, we are entertaining options in North America, China, and also parts of Europe.”
During the interview he also said that China was a “strategic market” for SABIC, and that the company is looking to expand its current joint venture with Chinese petrochemical firm Sinopec.