BOC in joint venture with Sinopec subsidiary By Sarah Laitner Published: April 9 2002 12:12 | Last Updated: April 9 2002 13:46
BOC, the UK industrial gases group, has formed an industrial gases joint venture with a subsidiary of Sinopec, the state-run Chinese oil giant. The company said on Tuesday it was its largest investment in the country.
The joint venture, to be known as BYG, will meet expanding industrial gases requirements in Nanjing, China.
It will buy three air separation assets from Sinopec and build another, requiring an investment of nearly $100m by 2004. It will produce nearly 5,000 tonnes of gas a day for the local market.
BYG has also won two supply contracts in Nanjing, including supplying a new petrochemical complex being built by a joint venture between Sinopec and BASF of Germany.
Sinopec is the biggest petrol retailer in China with 24,200 stations. The deal is one of a number of alliances the Chinese company has made with foreign companies, such as BP, the oil group.
Dick Grant, chief executive of BOC Process Gas Solutions, said: "BOC is committed to working closely with global customers like BASF to understand and meet their needs. In particular, we are looking forward to a very positive relationship with Sinopec, one of the most prestigious companies in Asia."
Shares in BOC edged up 7p to £10.72 in morning trade.