On March 18, Sinochem International signed the agreement on processing materials provided by clients with CNPC Liaoyang Petrochemical Branch and the Northeast Branch of CNPC Chemicals and Sales Company in Beijing. According to the agreement, Sinochem International will provide Liaoyang Petrochemical with MX which will then be processed to PX by the end of this year. The signing of the agreement marks a major step of Sinochem International towards expanding the chemicals trade model.
To make breakthroughs in the processing trade business, Sinochem has conducted careful market research, took into account the global supply and demand of MX and PX, the developments of upstream oil processing industry and the downstream PTA, polyester and the textile industry. In the principle of giving priority on products with urgent demand and developing a long-term cooperative relation and reaching a win-win situation, the company finally establishes the MX-PX processing cooperation relationship with Liaoyang Petrochemical.
Liaoyang Petrochemical is a regional branch of CNPC and the biggest fiber production base in North China. The agreement is also the first long-term raw material processing cooperation agreement for Liaoyang Petrochemical.