BEIJING—China National Chemical Corp. and Russia's Rosneft have signed an agreement to jointly develop a feasibility study for the Far Eastern Petrochemical Co. project.
ChemChina Chairman Ren Jianxin and Rosneft CEO Igor Sechin signed the agreement on June 25, according to a ChemChina report.
“FEPCO, one of the largest industrial complexes in Russia, will help substitute the exported feedstock with high added value products,” the report noted.
The companies announced last year that ChemChina was to acquire “a majority stake in FEPCO project, as well as the key stages of such investment.
“By signing the memorandum, Rosneft involves a strategic partner for FEPCO project and makes a major step towards its development,” the release said.
Tire maker Pirelli, now owned by ChemChina, is a key research and design partner in the rubber production plans at FEPCO, which aims to produce, among others, styrene butadiene rubber for “green” tires.
Rubber produced at FEPCO, situated in Nakhodka, Russia, will be used by Pirelli in its tire production facilities in the South Pacific region.
In April 2015, Polish company Synthos S.A. was brought on board to conduct feasibility studies on various topics including the operation of the plant, market studies, investments and estimates of operating costs.