China’s state-owned petrochemicals producer Sinopec (Beijing / China; www.sinopec.com) has signed a framework agreement to acquire an undisclosed stake in Russian petrochemicals giant Sibur (Moscow; www.sibur.com). The deal was sealed during a visit by Russian president Vladimir Putin to China. A spokeswoman for Sibur told Plasteurope.com that while the company would not disclose the exact stake Sinopec is set to acquire, the deal is expected to close by 1 December this year, provided all regulatory authorities involved give their blessing.

The latest agreement builds on the existing collaboration between the companies. In May last year the two conglomerates agreed to expand their trading operations and examine further opportunities for collaboration in gas processing and petrochemicals – see Plasteurope.com of 22.05.2014.

Commenting on the agreement, Sinopec chairman Wang Yupu said, “Sibur’s vertically-integrated upstream and petrochemicals business model is highly complementary with Sinopec’s businesses. This transaction is in line with our objective to strategically expand our petrochemical business overseas.” He added that the partnership will diversify and secure Sinopec’s long-term sourcing of petrochemical products. Sibur chairman Leonid Mikhelson said the deal will “reinforce Sibur’s expertise to maximize the efficiency of new large-scale projects and raise the company to a new level.”