China approves 35 percent SK stake in $2.7 billion Sinopec ethylene plant

Reuters 5 June 2013
(Reuters) – China’s top economic planner has approved South Korea’s SK Group taking a 35 percent stake in a $2.7 billion petrochemical complex that state refiner Sinopec Corp built in central China, a government statement said on Wednesday.
China’s National Development & Reform Commission has approved SK’s acquisition of a stake in the complex in Hubei province that has a capacity of 800,000 tonnes per year (tpy) of ethylene.
The plant is now a joint venture between the Chinese state oil major and SK, with a 65-35 split, NDRC said on its website. (www.ndrc.gov.cn)
The two companies signed a preliminary deal in December 2011 to explore joint investment in the project. SK’s investment cost for the stake was not given.
Sinopec completed building the complex around the end of 2012 in the central Chinese city of Wuhan.
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