Pan-Asia Group, the investor of the first industrial investment project between China and Saudi Arabia, signed an agreement with Sinopec Chemical Commercial Holding Company Limited on May 15th to set up a joint-venture sales company to cover the project’s supply of raw materials and product distribution service.
Sinopec Chemical Commercial Holding Company Limited is a wholly-owned subsidiary of Sinopec Group and the biggest petrochemicals trade company in both China and Asia. According to the agreement, the two parties will cooperate in product distribution, financial operation, production technology and quality assurance.
The cooperation is expected to take advantage of Sinopec Group’s market strength and provide the project with market, technological and financial support.
Science City (Guangzhou) Investment Group and Pan-Asia Group signed a strategic cooperation framework agreement on January 19th to invest an amount totalling US$ 2.4 billion in a petrochemical and chemical fiber integration project in Jazan, Saudi Arabia, marking the first cooperation project of its kind between the two countries.
The project started construction on January 29th and will be put into operation by the end of October 2020. It will make full use of Saudi Arabia's rich petroleum resources, producing downstream chemical products in Jazan that will be transported back to China to meet domestic industrial development needs. The project is estimated to bring 2,500 job opportunities to local residents.
According to the Guangzhou Development District (GDD), this iconic Sino-Saudi project is an incentive for Chinese enterprises to invest in Saudi Arabia.
In line with the Belt and Road Initiative, the district started pushing forward Sino-Saudi cooperation in 2016 and it has organized a series of business roadshows, partnering meetings and tours to help Chinese brands match with potential partners in Saudi Arabia as well as the Middle East and North Africa regions.
Thus far, GDD has more than 40 Sino-Saudi industrial investment projects in negotiation.