JEDDAH - SABIC Innovative Plastics plans to set up an engineering thermoplastics compounding plant in the western Chinese city of Chongqing, to tap into the growing electronics, computer and automotive manufacturing base there.
The facility is slated to open in 2013 and will be the first in west China for the Pittsfield, Massachusetts-based company. It's also the latest in a string of plastics-related investments in China this year from SABIC IP and its parent, Saudi Basic Industries Corp. in Riyadh.
Earlier this year the company announced a $1 billion polycarbonate plant in Tianjin, part of its joint venture with Chinese state-owned Sinopec, and expanded its existing engineering plastics compounding operations in Shanghai and Guangzhou.
A SABIC IP spokesman declined to provide more information about capacity and investment details in Chongqing, saying some of those were still under discussion.
SABIC and the Chongqing city government jointly announced the investment Friday, but the spokesman said the factory will be wholly-owned by SABIC.
The compounding plant will be located in the Chongqing Western Microelectronics Industrial Park.
