The project is expected to be completed and operational by 2011, marking a significant milestone for Yangzijiang Acetyl Chemical Co., Ltd., which will then become one of the world's largest producers of acetic acid, with an annual output of over one million tons. On January 18, a signing ceremony took place in the Great Hall of the People in Beijing for the cooperation memorandum between Sinopec-BP Chongqing Yangzijiang Acetyl Chemical Co., Ltd. and its partners regarding the expansion of the acetic acid production capacity to 650,000 tons per year. This important event was attended by Chinese Premier Wen Jiabao and British Prime Minister Gordon Brown, highlighting the strategic importance of the project for both countries. Key officials from various Chinese government departments, including Ma Kai from the National Development and Reform Commission, Yang Jiechi from the Ministry of Foreign Affairs, and Chen Deming from the Ministry of Commerce, were present. Representatives from Sinopec and BP also participated, with Su Shulin, General Manager of China Petrochemical Corporation, and Gary Dirks, Vice President of BP, among them. Liu Genyuan, chairman of the asset company, and Reyad Fezzani, president of BP Chemical Investment Co., Ltd., signed the memorandum on behalf of their respective companies. Established in 1995 under the approval of the former Ministry of Foreign Trade and Economic Cooperation (now the Ministry of Commerce), Yangzijiang Acetyl Chemical Co., Ltd. is a joint venture between Sinopec Sichuan Vinylon Plant, British BP Chemical Investment Co., Ltd., and Chongqing Energy Investment Co., Ltd. The company produces acetic acid and its derivatives using natural gas and methanol as primary raw materials. After three stages of development, the company has invested a total of 2.8 billion yuan. Currently, it produces 350,000 tons of acetic acid and 80,000 tons of acetate annually. Since its commissioning in 2007, the facility has produced over 2 million tons of acetic acid and 374,000 tons of acetate, generating sales revenue of 9.4 billion yuan and a total profit of 2.8 billion yuan. It has successfully returned capital to shareholders and delivered substantial profits to all stakeholders, becoming a model for successful foreign investment in western China. Based on the strong growth of the global and domestic acetic acid market, Sinopec and BP have agreed to expand their collaboration. The new 650,000-ton-per-year acetic acid expansion project will be built upon the existing 350,000-ton plant, with a total investment of 3.5 billion yuan. The project is expected to boost sales revenue by approximately 4 billion yuan and generate around 1 billion yuan in additional profits and taxes. With an expected completion date in 2011, this expansion will position Yangzijiang Acetyl Chemical Co., Ltd. as one of the largest acetic acid producers globally. The project will utilize BP’s most advanced technology, while natural gas will be supplied by the Sinopec Puguang Gas Field. Methanol and other raw materials will come from the Sichuan-Daiwan Plant, supporting the adjustment of product structures and the comprehensive utilization of natural gas-based chemical industries in the region. This initiative is expected to further boost economic development in Chongqing.

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