Chinese petrochemicals group China Petroleum and Chemical Corporation (Sinopec) has become a strategic investor in the Russian petrochemicals company Sibur.
Sinopec has successfully completed its acquisition of a 10 percent minority stake in Moscow-based Sibur marking not only a closer working relationship between the groups but also deepening strategic cooperation between Russia and China.
The deal will create value for both companies as well as strengthening the market positions of the groups and leading to “better sharing of joint expertise and resources”, according to Sibur.
The companies announced a planned stake purchase plans in September, during a state visit by Russian President Vladimir Putin, but did not release details at that time.
“Sibur's vertically-integrated upstream and petrochemicals business model is highly complementary with Sinopec's businesses. This transaction is in-line with our objective to strategically expand our petrochemical business overseas,” commented Sinopec's chairman Wang Yupu.
“Our continued partnership will help diversify and secure Sinopec's long-term sourcing of petrochemical products,” he added.
“The decision of Sinopec .... to acquire a stake in Sibur confirms the success of the management's effort to transform the company into a gas processing and petrochemical leader and comes a recognition of Sibur's high growth potential, said Sibur group chairman Leonid Mikhelson.
He added that “getting Sinopec on board” as a strategic shareholder would “help build the synergy required to bring Sibur's growth to a brand new level”.
The groups will continue dialogue to widen the scope of collaboration. In a new step, the firms are considering the participation of Sinopec in the Amur gas chemical complex construction project as a strategic partner with Sibur, according to the Russian company.
Sibur already plans to build the GCC to produce ethylene and its polymer derivatives in Russia's Far East Amur region.