US$1b to kick start largest joint venture
Petrochemicals project partners China National Offshore Oil and Royal Dutch/Shell have awarded US$1 billion in contracts to three Japanese firms, kick-starting the mainland's largest sino-foreign joint venture.
A JGC-led alliance, another headed by Chiyoda and Yokogawa Electric signed contracts yesterday to build a US$4.3 billion petrochemicals complex in Huizhou, Guangdong.
JGC and United States consultancy firm Stone & Webster won a contract worth nearly US$500 million for the construction and commissioning of an ethylene plant, which will form the core of the complex. Ethylene is used in the manufacture of plastics products.
Chiyoda, one of Japan's largest engineering and construction firms, together with Technip and Mitsubishi, won a contract worth almost US$300 million for engineering, procurement and construction for a plant producing downstream petrochemicals such as propylene oxide and polyols, key raw materials for foams.
Yokogawa, Japan's largest manufacturer of industrial automation systems, won an estimated US$200 million contract to design and implement equipment such as resources management systems.
Major construction work is expected to begin early next year on a 4.3 sq km site at the Daya Bay Economic and Technical Development Zone, about 80km northeast of Hong Kong Island. Completion is scheduled for 2005.