INEOS, Sinopec plan major phenol plant in China

London – INEOS Phenol and Sinopec Yangzi Petrochemical Co. have signed a letter of intent to study and negotiate a joint venture to build and operate a phenol/acetone manufacturing site at the Nanjing Chemical Industrial Park in Jiangsu Province, China. The project is expected to be completed in 2013, said INEOS.

The planned facility will have a capacity to produce 400 kilotonnes per annum (ktpa) of phenol and 250ktpa of acetone making it the largest plant of its kind in China. The facility will also include 550ktpa of cumene capacity.

Sinopec is China’s leading producer of phenol and acetone with two production sites in Shanghai and Beijing and a third under construction in Tianjin. INEOS Phenol currently has manufacturing sites in Germany, Belgium, and Alabama in the US.

Nanjing is at the center of China’s strongest market for both phenol and acetone, according to Ineos. The JV project, it added, will make INEOS the only company to have global manufacturing capability, with phenol and acetone production in Europe, the US, and Asia. ??

Leen Heemskerk, CEO of INEOS Phenol said: “The partnership of Sinopec YPC, INEOS Phenol and the Nanjing Chemical Industry Park combines superior technology, full feedstock and supply chain integration, and strong operating cultures. We look forward to developing this investment which will provide competitive products and integration investment opportunities to our customers.”