On February 22nd, 2019, China North Industries Group Corporation Limited, Saudi Arabia Petroleum Co., and Liaoning Panjin Xincheng Group Co. signed an agreement on establishing a joint venture in Beijing, witnessed by Han Zheng, member of Standing Committee of Political Bureau of the CPC Central Committee and Vice Premier of the State Council, and Mohammed bin Salman, Crown Prince of Saudi Arabia. Tang Yijun, Governor of Liaoning Province, Jiao Kaihe, President of China North Industries Group Corporation Limited, and Amin Nasser, President and CEO of Saudi Aramco attended the signing ceremony.
The three parties have agreed to establish a new company: Huajin Aramco Petrochemical Co., Ltd., with the registered address in Liaobin Coastal Economic & Technical Development Zone (Liaodong Bay New District) in Panjin, Liaoning Province. China North Industries Group Corporation Limited holds 36% of its share, Saudi Aramco holds 35% of its share, and Panjin Xincheng Group holds 29% of its share, with an expected total investment scale of over 10 billion USD. After its completion and being put into operation, the company would become the largest joint venture in China.
After the establishment of the company, it would be responsible for the construction and operation of a key refining-chemical integration project located in Panjin of Liaoning Province, including the facilities of producing refined oil with an annual capacity of 15 million tons, ethylene with an annual capacity of 1.5 million tons, and paraxylene with an annual capacity of 1.3 million tons. The project would be put into a trial run in the second half of the year of 2023.
In an interview, Jiao Kaihe, President of China North Industries Group Corporation Limited, said, "Saudi Arabia is the largest oil producing country in the world, and China is the largest market for the consumption of petroleum and the relevant chemical products. We are able to make full use of each other's advantages through strategic cooperation with Saudi Aramco. Our company would make mutual efforts with our partners to turn the project into a world-level, high-end and highly-intensified petrochemical base with the great support from the governments of Panjin and Liaoning Province to make contributions for the rejuvenation cause of the province."
As one of the important parts of the cooperation plan with Saudi Aramco, China North Industries Group Corporation Limited would also plan to establish a joint venture of retailing product oil this year under the cooperative relations with Saudi Aramco and Liaoning Transportation Construction Investment Group Co., and build a network of retail gasoline stations in targeting markets to offer high-quality product oil to local markets and make contribution in the economic and social development of the province.