Saudi Aramco, a leading global energy and chemicals company, is currently in discussions with Hengli Group Co., Ltd. regarding the potential purchase of a 10% share in Hengli Petrochemical Co., Ltd. pending necessary due diligence and regulatory approvals.
Both companies have signed a Memorandum of Understanding (MoU) outlining the proposed transaction, which falls in line with Aramco’s strategic plans to enhance its downstream activities in key markets, develop its liquids-to-chemicals program, and secure reliable crude oil supply contracts.
Hengli Petrochemical, a subsidiary under Hengli Group’s control, operates a refinery with a capacity of 400,000 barrels per day and an integrated chemicals complex in Liaoning Province, China. Additionally, it owns multiple plants and production facilities in Jiangsu and Guangdong Provinces.
Mohammed Y. Al Qahtani, President of Aramco Downstream, stated that this Memorandum of Understanding reinforces its endeavors to strengthen its global downstream presence.
“We are actively exploring investment opportunities in significant markets as part of our liquids-to-chemicals strategy. We are eager to establish new partnerships and are optimistic about expanding our footprint in the crucial Chinese market,” he added.
Hengli Petrochemical Co., Ltd. is a China-based company primarily involved in the refining, petrochemical, and polyester new materials sectors. The company focuses on the production, research and development, and sales of various products including petroleum refining, p-xylene (PX), acetic acid, purified terephthalic acid (PTA), ethylene glycol, polyester chips, civilian polyester filament, industrial polyester filament, polyester film, engineering plastics, and promising biodegradable polymers (PBS/PBAT) in the domestic market.
These products cater to a wide range of industries such as textile and home textiles, food-grade packaging, construction, logistics, automotive, environmental protection and new energy, electronics, optical equipment, and other sectors.
The company recorded 234 billion yuan in revenue last year with 6,905 million yuan in net profit and 11.88% in ROE.
