Saudi Basic Industries Corporation (SABIC) has signed a Project Development Agreement (PDA) with Rongsheng Petrochemical Co. Ltd. and its wholly owned subsidiary Rongsheng New Materials (Zhoushan) Co. Ltd. to jointly advance the development of the Jintang New Materials Project in Zhoushan, Zhejiang Province, China.

Under the agreement, SABIC and Rongsheng Petrochemical will evaluate a potential equity investment of up to 50% by SABIC in Rongsheng New Materials, paving the way for a strategic partnership between the two global petrochemical companies. The PDA also establishes a framework for project development activities leading towards a potential Final Investment Decision (FID).

The Jintang New Materials Project is planned to enhance the production of advanced chemical materials to meet growing demand from key downstream industries across China and the wider Asian market. The development is expected to integrate world-class technologies, advanced manufacturing capabilities, and operational excellence to strengthen competitiveness and drive long-term sustainable growth.

The project scope includes the joint development, evaluation, and potential investment in a large-scale petrochemical complex focused on advanced chemical materials. The partners will collaborate on engineering, project planning, technology integration, and commercial evaluation as part of the development process prior to reaching a final investment decision.

Dr. Faisal M. Alfaqeer, Chief Executive Officer and Executive Board Member of SABIC, said the partnership reflects the company’s strategy to expand its global footprint through strategic collaborations while strengthening innovation, portfolio development, and sustainable value creation.

Xiang Jiongjiong, Chief Executive Officer of Rongsheng Petrochemical and Executive Director of the Board, described the agreement as a landmark partnership that combines the complementary strengths of both companies to jointly develop and operate advanced chemical materials projects while enhancing competitiveness in the global chemical industry.

The collaboration represents another milestone in SABIC’s international growth strategy and reinforces its commitment to expanding its presence in Asia through strategic investments in high-value petrochemical and advanced materials projects.