SHENYANG, Sept. 6 (Xinhua) -- Netherlands-based chemicals giant LyondellBasell signed a memorandum of understanding (MoU) on Thursday with Baolai, a petrochemical company in northeast China's Liaoning Province.
Based on the MoU, the two plan to invest in petrochemical projects involving a total investment of 12 billion U.S. dollars over the next 10 years.
LyondellBasell will buy 50 percent stake of Baolai's chemical project that is currently under construction, which focuses on the comprehensive utilization of light hydrocarbons.
The 12-billion-dollar investment is expected to go into medium and long-term projects in Panjin City, a major petrochemical production base in northeast China, the company said.
Baolai has pumped 18 billion yuan (about 2.5 billion U.S. dollars) for the first stage into its comprehensive utilization project of light hydrocarbons, which will have an annual output capacity of 300 tonnes of polyethylene, polypropylene, styrene, butadiene and other petrochemicals.
Bob Patel, CEO of LyondellBasell, said China is the largest and fastest-growing market globally for the company's core technologies and products.
The partnership will bring LyondellBasell closer to its clients and achieve more flexible production since Baolai enjoys a good reputation in China's petrochemical industry, he added.
