SABIC, along with Shenhua Ningxia Coal Industry Group Co. Ltd. (SNCG) and the Government of the Ningxia Hui Autonomous Region of China, agreed today on a set of principles for cooperation in the further development of a potential joint venture between SABIC and SNCG to build a greenfield coal-to-chemicals complex. The facility will focus on highly-differentiated applications and segments through polymers derivatives. Yousef A. Al-Benyan, vice chairman and CEO of SABIC, commended the high growth rates demonstrated by the Chinese economy, highlighting SABIC's intent on developing collaboration with production sectors in China. He further said, "We gather here today not merely to sign an agreement on a specific new project," adding, "More broadly, we look to further SABIC's investment in the Chinese economy and our strategic engagement with key participants in the Chinese petrochemicals industry." The project will be located in the Ningxia Hui Autonomous Region. The agreement includes certain commitments from the Ningxia government to provide support and incentives to the project, while also providing a framework for coordination and cooperation between the three parties in connection with the project approval process. The agreement was signed during the visit of a high-level delegation from the Kingdom, led by the Deputy Crown Prince Muhammad Bin Salman, under the aegis of Khalid Al-Falih, minister of energy, industry and mineral resources, and Dr. Majed Bin Abdullah Al-Qasabi, minister of commerce and investment, and in the presence of a number of ministers, who were visiting China in connection with the Kingdom's current participation in the G20 summit. The cooperation between the parties with respect to the coal-to-chemicals project contributes to the Chinese government's "Belt & Road Initiative," expanding the economic ties and bilateral trade between Saudi Arabia and the People's Republic of China. The project would leverage the shareholders' respective best practices, operational experience, and technologies in the petrochemical industry. The project would benefit from SABIC's participation through the utilization of SABIC's advanced technologies. The project would also have access to SABIC's global Technology & Innovation Centers for product development, and technical support and application development programs. SABIC would also leverage its extensive global marketing and customer service capabilities. The project would also benefit from the participation of SNCG, which is an affiliate of Shenhua Group, one of the largest coal producers and suppliers in China, as well as a global coal-based, integrated energy and chemicals company. The project would also gain from its location in the Ningxia Hui Autonomous Region, which is one of the largest coal producing regions in China, and the incentives and support that will be provided by the Ningxia government. SABIC is a global leader in diversified chemicals headquartered in Riyadh, Saudi Arabia. It manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals. SABIC recorded a net profit of SR18.77 billion ($5 billion) in 2015. Sales revenues for 2015 totaled SR148.09 billion ($39.49 billion). Total assets stood at SR328.22 billion ($87.53 billion) at the end of 2015. SABIC has more than 40,000 employees worldwide and operates in more than 50 countries. The Saudi Arabian government owns 70 percent of SABIC shares with the remaining 30 percent publicly traded on the Saudi stock exchange.
