BP plc (London; www.bp.com) and Xin Feng Ming Group Co., Ltd. entered an agreement to license BP’s latest generation purified terephthalic acid (PTA) technology to Dushan Energy Ltd., a subsidiary of Xinfengming. BP and Xinfengming also signed a memorandum of understanding (MOU) to deepen strategic cooperation along the polyester raw materials value chain and Xinfengming intends to deploy BP technologies for all Xinfengming’s future PTA and related investments.
Dushan Energy Ltd. intends to build a 2.2 million tonnes per annum unit at Dushan Port Economic Development Zone in Pinghu, Zhejiang province. At present, the basic design of the PTA unit has been completed and construction has started on the site. The project is expected to commence production in Q3 2019.
“We are delighted to provide our most advanced PTA technology to Xinfengming, one of the leading enterprises in China’s chemical fibre industry. Combining BP’s technology and brand with Xinfengming’s long experience in the China polyester industry we expect to pave a solid foundation for future collaboration and mutual development for both parties,” Said Rita Griffin, chief operating officer, BP Petrochemicals
The MOU on strategic cooperation covers Xinfengming’s further investments in PTA phase II utilizing BP’s most advanced PTA technologies and related products. In addition, based on China’s move towards products with improved environmental performance, BP and Xinfengming will jointly promote low-carbon products in China.
Zhuang Kunlong, chairman of the board of directors of Xinfengming, said, “We recognize the advantages of BP’s cutting-edge PTA and related technology and its innovative capability in the polyester supply chain. We hope that working collaboratively with BP in these areas will further enhance Xinfengming’s competitiveness in the polyester industry in the long run.”
“We are committed to supporting the sustainable development of China’s petrochemicals industry through our most advanced PTA technologies and expertise,” Dr. Xiaoping Yang, BP China president, added, “Through the MOU, BP and Xinfengming will jointly deliver high-quality products to customers.”