Italy Based M&G Signs $1bn Deal with Chinese Sinopec for Texas Site
In a latest move in the European plastic industry Italy based M&G and China based Sinopec has entered into a business agreement to build its planned PET and PTA plant at a site in Texas. The announcement was made by the Italy based company on 14th January 2013 and has reiterated that the deal would help them meeting the ever growing demand of polymers and chemicals in the region. According to the company the European region has been witnessing a sharp growth in the demand of various polymers and chemical-based chemicals and there is huge opportunity for businesses and entrepreneurs to leverage its total potential.
According to reports from various sources the engineering, procurement and construction (EPC) contract is worth $1bn (€0.7bn) which is one of the largest deal that the industry has ever gone. While briefing about the deal the representative of the company says the site that it is going to initiate in the Texas region will house a PET plant with a capacity of 1m tons per year and a PTA line with a capacity of 1.2m tons per year.
According to the terms of the agreement M&G will be the sole proprietor of the plant and it would definitely help us meeting the quality that our clients and customers are looking for. According to reports the deal is being viewed as one of the milestones in the history of the company as it will help the company entering into the huge EPC market of North America. This is important because it is a part of company’s SEG business strategy to expand its operation from coal chemicals to polymers.
In last September M&G Group had announced the purchasing of land and had said that it is going to be one of the milestones not only for the company but also for the region as the new facility will have the potential to create about 250 new jobs and an additional 700 indirect positions. Up to 3,000 construction jobs also will be needed for the project. According to reports from various sources the Industrial and Commercial Bank of China and Mexico’s Banco Inbursa will be financing the project.
About M&G Group
M&G Group is one of the world’s largest producers of PET for packaging applications and a technological leader in the polyester market. The understanding of end user’s needs, the strong technological integration, engineering knowledge and a fast and lean decision-making organization are the keys of its success.
China Petroleum & Chemical Corporation commonly known as Synopec Corporation is a listed company on domestic and international stock exchanges with integrated upstream, midstream and downstream operations, strong oil & petrochemical core businesses and a complete marketing network