Project Overview
Investment Background – China-Saudi Arabia Capacity Cooperation Framework Agreement
∎ The Belt and Road Initiative of China
-Encourages Chinese companies to bring their capacity overseas
-Facilitates the “Going Abroad” process of supporting equipment
-Promotes the economic transformation and upgrading of China
∎ Saudi Arabia Vision 2030
-To reduce overdependence on oil
-To become one of the world’s 15 largest economies
-To lift the foreign direct investment to GDP ratio to 5.7% (the international level)
-To increase the private sector’s contribution to GDP to 65%
Location: Jazan City for Primary and Downstream Industries (JCPDI)
∎ The Project is an important part of the JCPDI’s development plan
∎ Projects in the JCPDI enjoy policy incentives
-One of the four petrochemical & energy-intensive industrial cities under Royal Commission management
-The Project will be landed in the JCPDI to align with Vision 2030
∎ Project land: rent is charged at a merely symbolic rate
-Energy supply: price advantages in utilities and other resources
-Financing support: long-term low-interest loans from the Saudi Industrial Development Fund (SIDF)
-Import tariff: machinery, equipment and raw material imports for investment projects are exempt from tariffs
-Local products are protected by government policies
-Tariffs are imposed on imported products
-Human resources: subsidies for staff salaries and training costs
Value Chain–Expanding to Upstream Industries
Project Planning
Phase I: Build PTA and PET Plants & Supporting Facilities
Oct. 2018-Aug. 2020
-PET Plant (500 ktpa)
-PTA Plant (1.25 mtpa)
-Water Treatment Unit
-High Pressure Steam Boiler, Pipe Network and Tank Unit
-Benzoic Acid Recovery Unit
-Product Storage & Transportation Unit
-Catalyst Preparation Unit and Cooling Water Unit
Phase II: Increase Production Scale Based on Utilities Built in Phase I to Improve the Overall Efficiency
Jun. 2019-Jun. 2021:
-New PET Plant (500 ktpa)
-New PTA Plant (1.25 mtpa)
Phase III: Expand to the Chemical Fiber Industry Based on Upstream Raw Material Advantages
Jul. 2021-Jun. 2024:
-PBT Plant (200 ktpa)
-Flat Thin Film Plant (200 ktpa)
-Polyester Chemical Fiber Plant (200 ktpa)
Project Development