[ARTICLE FREE PASS - Subscribe today to access the entirety of Saudi Economic Survey's comprehensive weekly publication] -Saudi Arabia and China signed yesterday agreements and cooperation programs between the two countries. They included a memo of understanding between Saudi Sabic and Chinese Sinopec in the presence of the Custodian of the Two Holy Mosques King Abdullah bin AbdulAziz and Won Jiapao the Chinese Prime Minister in the palace of the Custodian of the Tow Holy Mosques in Riyadh.
A cooperation program project was also signed between the Diplomatic Studies Institute in the Saudi Ministry of Foreign Affairs and the Chinese Foreign Affairs University. HRH Prince Saud Al-Faisal and the Chinese Minster of Foreign Affairs Yang Gitshi signed this program project. Also a memo of understanding was signed between Saudi Basic Industries Co and Chinese Sinopec with a view to establish a factory for the production of poly carbonate in Tiangin. HRH Prince Saud bin Abdullah bin Thinaian the president of the Royal Commission of Jubail & Yanbu and chairman of Sabic for the Saudi side and Mr. Futching Yu the chairman of Saibonic for the Chinese side.
The executive program for the cultural expense between the two governments for the years from 2012 to 2017 was also signed by Dr Yusef bin Ahmed AlEthaimeen Minister of Social Affairs and deputy Minister of Culture and Information and for the Chinese side Minister of Foreign Affairs Mr. Gitshi.
Also a cooperation agreement for the peaceful use of nuclear power is signed between the government of the Kingdom of Saudi Arabia and the Peoples’ Republic of China. Dr. Hashim bin Abdullah Yamani President of King Abdullah City for Nuclear and Renewable energy for the Saudi side and for the Chinese side Mr. Tchang Ping president of National Commission for Development and Reform.
The two parties signed a work program between King AbdulAziz Public Library and Beijing University. It is signed for the Saudi side by Mr. Faisal bin AbdulRahman bin Muamer the General Superintendent of King AbdulAziz Public Library and for the Chinese side Lee Yanson the President of Beijing University. During the ceremony the signatories exchanged signed copies of the agreements and cooperation programs.
The two parties also exchanged the papers of the agreement signed between Saudi Aramco and Chinese Sinopec Corporation. The papers were received by Mr. Khalid bin abdulAziz AlFalih President of Saudi Aramco and senior executive manager and from the Chinese side the chairman of Sinopec co Mr. Futching Yu.
The signing ceremony was attended by HRH Prince Naif bin AbdulAziz the Crown Prince, the Second Deputy Premier and Minister of Interior, and Prince Sulman bin AbdulAziz Minister of Defense , Prince Migrin bin AbdulAziz the President of Genersl Intelligence , Prince Mitib bin Abdullah bin Abdul Aziz state Minister and member of ministerial council , Head of the National Guard, Prince AbdulAziz bin Abdullah bin AbdulAziz deputy foreign Affairs Minister, Engineer Ali Al-Niami Minister of Petroleum and Mineral Wealth, engineer Mohammed AlMadhi deputy chairman and executive manager of Sabic and Yahya Al-Zaid the ambassador of the Custodian of the Tow Holy Mosques to China.
The agreement signed between Sabic and Sinopec for the execution of a cooperation protocol for finding out new investment opportunities and to confirm their commitment to previous agreements signed between them including cooperation in the field of poly carbonate production in China.
This was under the auspices of the Custodian of the Two Holy Mosques King Abdullah bin AbdulAziz and in the presence of Mr. Won Jiapao the Chinese Prime Minister. The two parties were represented in signing the agreement by Prince Saud bin Thenaian President of Royal Commission of Jubail & Yanbu and President of Sabic and Fu Tching Yu chairman of Sinopec group, chairman and CEO in the presence of Engineer Mohammed Al-Madhi Deputy chairman and Sabic CEO.
It is important to note that this protocol which was approved by the national committee for development and Reform in the Republic of China, sets the basis for a joint investment between Sabic and Sinopec to construct a new factory for the production of poly carbonate in (Sinopec/Sabic Tiangin for Petrochemicals) in Tiangin in China. Its total production capacity will be 260 thousand metric tons annually.
After signing the cooperation protocol Prince Saud bin Thenian pointed out that the mutual relations between the Kingdom and China and the efforts of both leaderships to develop their scopes on all aspects especially as regards to economical and industrial matters confirming the integration between the Kingdom and China especially for companies working in the fields of petrochemicals, engineering and construction sector aiming at benefiting of investment opportunities in both countries.
He said: the aspirations of Sabic and Sinobec are directed towards building a long term strategic partnership that will contribute in enriching the economies of both the Kingdom and China in the fields of scientific research and technical creativity, engineering fields, executing projects and marketing products. Sabic chairman confirmed their commitment to continue investing in the Chinese market generally and that this investment is distinguished by using the technique of poly carbonate production owned by Sabic. It is one of the best techniques used in this field through it Sabic shall produce high quality environment friendly “poly carbonate” based on which many manufacturing and final industries. Poly carbonate is considered an important material used in a wide variety of consumption, industrial and commercial products including cars spare parts, home tools , medical supplies. The production of poly carbonate will meet the growing demand on poly carbonate in China.
Sabic chairman explained that by completing this project with the Chinese partner and the expected production volume Sabic will become the largest producer of poly carbonate in the world at operating this factory in 2015. The agreement of marketing the product will allow Sabic to produce ready-made goods made of poly carbonate and to supply the product to the company factories in China and the Pacific area. Prince Saud said“we are following-up the international rates of growth achieved by the Chinese economy and we declare our admiration of the features of Chinese renaissance and its soaring economic development; Sabic is proud of its early introduction to the Chinese market as its one of the pioneering companies that took the initiative to supply China in early eighties with fertilizers , petrochemicals , plastic raw materials and the specialized plastics; also it supplied requirements of many manufacturing industries. He added that new investment beside the previous joint project with Sinopec will be developing the competitive capabilities of Sabic and opens the way for more joint work between the two companies as the compound will provide an ideal environment for exchanging and transferring experiences and techniques available with both Sabic and Sinobec in addition to the partnership in markets around the world which confirms the importance of integrated work between the two pioneering companies.
On the other side engineer Mohammed Al-Madhi Sabic deputy chairman the CEO said: China is presently the fastest growing Sabic markets in the world and one of the most important factors of our success in China is our participation with Sinopec. The strategic agreement protocol signed yesterday represents our commitment to enhance the continuity of the success of Sabic participations and its commitment to provide materials that form the building blocks of Chinese factories for more creativity and invention internationally.
Al-Madhi added that the signature of this protocol will enhance Sabic and Sinopec position as the two pioneering companies in the field of production and application of poly carbonate and Sabic will bring its international experiences in the field of petrochemical research and production to china. This participation completes Sabic presence in the field of manufacturing high performance plastics engineering and compounds. Mr. Mohammed Al-Dhihayan an economic analyst confirms that China is considered the most important commercial partner to the Kingdom, because it is one of the countries for which you can export as much as you import from it. He added that the volume of mutual investments between the two countries is important because it confirms the general welfare which is represented in the size of the trade balance between the two countries.
He said: the announcement of the Chinese Prime Minister regarding encouraging the Kingdom to invest in petrol and gas has many advantages, most important of which is that we guarantee that we have permanent markets in south East Asia. This will reduce the chances of risk in both countries’ economies. He continued to say that one of the most important advantages of entering in trade partnerships with china, is the intention of China to create investment opportunities in the Kingdom, and, therefore, strengthening the relationship with China raises the relationship between the two countries to a great degree in agreement or mutual interests.
Al-Dhayan pointed out that a country like China is considered one of the comprehensive economies; therefore we must deal with it as a whole and not individually, adding that the continuation in keeping the market requires some sacrifice which makes those partnerships win a big future share.
He continued to say that Sabic Company aims continually to develop its relationship with Chinese companies in order to increase its relations with the Chinese government especially that China is considered to be a promising market. He added that Sabic and Aramco have a big role in preserving the mutual trade between the two countries and the economic balance. He continued to say that this will greatly serve the economic interest of the Kingdom especially Saudi companies and serves the present and future interests of Sabec.
Al-Dhayan considered buying the Chinese GA company will open the opportunity for Sabic to develop its relations with Chinese companies. This has its positive effect in the future because the competition is tough on prices in the developed countries. He attributed that to the fact that Chinese market is still starting using developed plastics confirming that the presence of Saudi and Chinese Sabic has a great role in creating a promising future for both sectors, companies and generally for both countries.
