Fund-raising for $ 6 bn Sino-German petrochemical JV
Representatives of nine Chinese banks have recently gathered in Nanjing, capital of east China's Jiangsu Province to launch a domestic fund-raising program for a giant Sino-German petrochemical joint venture to be built in the city. According to an earlier report, the Yangzi Petrochemical Corporation and German Basf signed a letter of intent to jointly establish a petrochemical plant with an investment of 50 bn yuan (about $ 6 bn). Yangzi Petrochemical and Basf will each have a 50 % interest in the project. The joint venture, which is to be built at the Yangzi Petrochemical base, will produce 600,000 tons of ethylene a year and turn out other products. The joint venture will turn the Yangzi Petrochemical into the country's largest ethylene producer, with annual ethylene output expected to reach 1 mmt. Both sides have agreed to raise funds from the international money market, as well as money markets in China and Germany. Fund-raising was conducted in Germany in October this year.