China’s Zhejiang Hengyi Group to build US$6 billion petrochemical plant in Brunei

China’s largest chemical-fiber supplier for the textile industry, Zhejiang Hengyi Group Co., announced that it will build a US$6 billion petrochemical plant in Brunei. The project is by far the largest overseas investment by a privately-owned Chinese company and is aimed at reducing the company’s reliance on imports of petrochemical products. Zhejiang Hengyi currently imports 60% of its p-xylene consumption. The plant is expected to meet 30% of the company’s petrochemical needs and is designed to process 15 million tons of crude oil annually and produce p-xylene and aromatic hydrocarbon. The Brunei government has already approved the agreement signed by Brunei Shell Petroleum Co. and Zhejiang Hengyi, which stipulates that Brunei Shell will supply the crude oil requirements of the project. The Brunei government welcomed the project, which will create more than 2,000 jobs. The Brunei Economic Development Board also announced that local organizations and companies can buy up to 30% stake in the project. (December 2, 2011)