SABIC Signs Agreement To Evaluate 50% Stake In China's Jintang Materials Project

Saudi Basic Industries Corporation (SABIC) has signed a project development agreement with China's Rongsheng Petrochemical to jointly advance a major advanced materials project in eastern China.SABIC's stake in Chinese projectSABIC signed the Project Development Agreement (PDA) with Rongsheng Petrochemical and its wholly owned subsidiary, Rongsheng New Materials (Zhoushan), to advance the Jintang New Materials Project in Zhoushan, Zhejiang Province.Under the agreement, SABIC will evaluate acquiring up to a 50% equity stake in Rongsheng New Materials, marking a strong partnership between two of the world's largest petrochemical companies. The agreement also establishes the framework for project development activities ahead of a potential final investment decision. This comes as Saudi Arabia and China expand their industrial partnership beyond energy into chemicals, manufacturing, renewables, and hydrogen."The partnership with Rongsheng Petrochemical reflects SABIC's vision for growth and global footprint expansion through a collaborative approach," said Dr. Faisal M. Alfaqeer, CEO of SABIC.The Jintang New Materials Project is designed to expand production of advanced chemical materials to meet growing demand from downstream industries across China and the wider Asian market.Saudi-China partnership expands The agreement reflects a broader shift in the Saudi-China economic relationship, which has increasingly expanded beyond crude oil into industrial manufacturing, renewable energy, and strategic supply chains.Saudi Arabia has accelerated its renewable energy rollout after completing the Dumat Al Jandal Wind Farm in 2023, with the focus now shifting toward large-scale project execution.The Saudi Power Procurement Company plans to award around 14 gigawatts of renewable capacity in 2026 through the National Renewable Energy Program (NREP) Round seven tenders.By the end of 2025, Saudi Arabia had tendered a cumulative 64 gigawatts of renewable projects, including 20.6 gigawatts during 2025 alone, while installed grid-connected renewable capacity reached 12.3 gigawatts.Chinese firms expand Saudi investmentsChinese companies are playing a growing role in Saudi Arabia's renewable energy buildout. Two Chinese state-owned energy companies have signed cooperation agreements with Saudi partners covering solar photovoltaic and wind projects worth more than $4.2 billion.Separate agreements covering seven solar and wind projects totaling 15 gigawatts represent approximately $8.3 billion in planned investment, including the Al Masa'a and Al Henakiyah 2 solar projects with a combined capacity of 1.75 gigawatts.Hydrogen cooperation growsSaudi Arabia and China are also strengthening cooperation across solar manufacturing and hydrogen. A joint venture between Saudi Arabia's Public Investment Fund and China's Longi Solar established Longi as the preferred module supplier for the kingdom's utility-scale solar projects, supporting efforts to secure equipment supplies for large renewable developments.Chinese officials have identified green hydrogen as part of expanding bilateral cooperation, while Saudi Arabia continues developing the NEOM Green Hydrogen Project in Oxagon, a joint venture between NEOM, Air Products, and ACWA Power that is now 80% complete.