· New agreement signed in conjunction with HRH Deputy Crown Prince Mohammed Bin Salman’s visit to China
· Cooperation to cover broad range of industrial sectors including downstream, chemicals, rubber, R&D and photovoltaic value chain development.
· Agreement includes feasibility of using Saudi Aramco’s crude oil grades as feedstock for ChemChina’s refineries.
Beijing, August 31, 2016 – Saudi Aramco President and Chief Executive Officer, Amin H. Nasser, Khalid Al-Salem, President of the National Industrial Clusters Development Program (NICDP) and China National Chemical Corporation (ChemChina)President, Yang Xingqiang signed a memorandum of understanding here today that encourages all parties to seek investment opportunities in the energy and chemical sectors in the Kingdom.
The agreement sets the stage for NICDP and ChemChina to explore investment opportunities in the Kingdom of Saudi Arabia in renewable energy including the development of manufacturing facilities for the organo-silicone and solar energy photovoltaic (PV) value chain, specialty chemicals and automotive tires using local raw materials.
The agreement also calls for the potential development of other industrial sectors including performance fibers for high tech applications, industrial non-tire rubber, animal feed additives and engineering plastics.
The agreement explores broad cooperation with Saudi Aramco in crude and oil products supply. The agreement calls for assessment of the feasibility of using Saudi Aramco’s crude oil grades as feedstock for ChemChina’s refineries through a long-term Crude Oil Sales Agreement (COSA) that will commence 2017. The companies will assess cooperation in exchanging oil products from ChemChina’s refineries and subsidiaries with Saudi Aramco and its subsidiaries.
“This agreement is a forward step in realizing the Saudi Vision 2030 goals,” said, Amin H. Nasser, “Our global leadership in oil and petrochemicals is well-known, and this collaboration will lay the groundwork for significant growth in industrial capabilities, expanded employment and enable new and emerging industries in the Kingdom.”
“The three-party cooperation offers extraordinary potential and provides unique business and strategic opportunities for ChemChina which is implementing President Xi’s Belt and Road Initiative and its supply-side structural reforms. We believe this cooperation is only the spark to a dazzling future,”said Ren Jianxin, Chairman of ChemChina.
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About NICDP:
The National Industrial Clusters Development Program (NICDP) is leading the development of five fast-growing, export-oriented industrial clusters in Saudi Arabia: Automotive; Minerals and Metal Processing; Solar Energy products; Plastics and Chemicals; and Pharma & Biotech. The strategy is intended to make the most of Saudi Arabia's abundant energy, natural resources and raw materials as well as generating growth in exports and realize benefits in technology and skills development.
www.ic.gov.sa
Contact:
Industrial Clusters
Email: info@ic.gov.sa
About Saudi Aramco:
Saudi Aramco is a world leader in integrated energy and chemicals. We are driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s crude oil supply to developing new energy technologies, our global team is dedicated to creating positive impact in all that we do. We focus on making our resources more sustainable and more useful. This promotes long-term economic growth and prosperity around the world.
www.saudiaramco.com
Contact:
Saudi Aramco International Media Relations
Email: international.media@aramco.com
About China National Chemical Corporation
ChemChina, which is headquartered in Beijing, China, possesses production, R&D and marketing systems in 150 countries and regions. It is the largest chemical corporation in China, and occupies the 234th position among the Fortune 500. The company’s main businesses include materials science, life science, high-end manufacturing and basic chemicals, among others. Previously, ChemChina has successfully acquired 9 leading industrial companies in France, the United Kingdom, Norway, Italy, Germany and other countries. To learn more, visit www.51pfwang.com