BP and China PET Producer Explore Opportunities
BP has signed a strategic cooperation agreement with China Resources Chemical Innovative Materials Holdings (CRC), a leading PET producer and one of the UK energy and petrochemical company’s customers for purified terephthalic acid (PTA) feedstock.
The parties will explore opportunities to strengthen their cooperation on PTA sourcing and work together along the polyester value chain as well as look at further possibilities to work together.
As part of the deal, BP will also invest an undisclosed amount in CRC and become a shareholder.
“BP and CRC already have a close and longstanding relationship and we look forward to building on it further,” said Luis Sierra, CEO for BP’s Global Aromatics Unit. “We can see opportunities to work together to streamline and increase collaboration along the polyester value chain, improving flexibility and efficiency and creating value.”
Zhu Zhenda, CRC’s managing director added: “Through deepened cooperation, we anticipate effective integration of our resources, bringing advantages for both partners. We will work together to develop innovative technologies, new products and applications for our customers in future.”
Established in 2007, CRC produces non-fiber-grade polyester at its centers in Changzhou, Jiangsu and Zhuhai, Guangdong, with a total PET capacity of 2.2 million t/y. The Chinese firm, which is part of Hong Kong-registered diversified holding company CR Group, is also exploring the development of advanced downstream products, such as polyethylene terephthalate glycol (PETG).
BP produces 2.4 million t/y of PTA at its plant in Zhuhai, southern China, its biggest manufacturing PTA site worldwide.