(Yicai) Oct. 18 -- Chinese oil major China Petrochemical Corp., also known as Sinopec, is purchasing 30 percent equity in Kazakhstan’s largest polyethylene plant, which is being built by state-owned oil and gas company KazMunayGas.

Sinopec will receive the equity transfer from KazMunayGas and other partners in the project, the Beijing-based firm said on its WeChat account yesterday, citing the deal inked by Chairman Ma Yongsheng and Magzum Mirzagaliyev, chair of KazMunayGas, at the third Belt and Road Forum for International Cooperation yesterday.

The transaction is expected to be completed by the first quarter next year, Sinopec said, without specifying the amount of investment involved.

The factory, which will be located in the Atyrau region, will have an annual output of 1.25 million tons of the plastic, it said. It will make a wide variety of polyethylene products to meet growing market demand from the surrounding regions and worldwide.

The move deepens the ties between the two parties, Ma said. The combination of Sinopec’s advantages in the polyethylene industry chain together with Astana-based KazMunayGas’ strengths in local resources will ensure a win-win situation.

Sinopec’s participation as a strategic partner will be key to the project’s success, Mirzagaliyev said. Sinopec boasts rich experience in building modern and reliable polyethylene facilities, and the oil giant will also help open up the Chinese market to the factory’s products.

The two parties also agreed at the forum to link arms on a feasibility study regarding the investment in and construction of purified terephthalic acid and polyethylene terephthalate equipment.

Editor: Kim Taylor