(Alliance News) - Oil major BP PLC is exploring the idea of setting up a new acetic acid plant in China which would be its biggest in the world, the company said Friday.
At the International Petroleum & Natural Gas Enterprises Conference in Zhoushan, China, BP signed a memorandum of understand with Zhejiang Petroleum & Chemical Corp over the proposed plant.
The facility, which would be in Zhoushan, would use BP's Cativa XL technology to produce acetic acid, which is used in a variety of areas such as paints, adhesives, and solvents.
ZPCC already as a "major" integrated refining and petrochemical manufacturing complex in Zhoushan, BP said, and the new facility would be a part of this.
"This is a significant new opportunity for BP in China, one of the world's fastest-growing markets for petrochemicals," said Rita Griffin, chief operating officer of BP Petrochemicals.
"Combining BP Acetyls' world-leading technology and know-how, with ZPCC's world-class mega complex and local expertise, our new partnership will help meet demand for these important products."
BP shares were 0.5% lower on Friday morning in London at a price of 485.65 pence each.
By George Collard; georgecollard@alliancenews.com
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