What is the significance of the SABIC-Gulei Ethylene Project in Fujian, and how does it reflect SABIC's strategic commitment to China?

The SABIC-Gulei Ethylene Project — the world’s largest single-train ethylene facility with an annual capacity of up to 1.8 million tons — completed high-standard mechanical handover in June and entered the critical feedstock commissioning phase, marking a major milestone in its development. As a RMB 44.8 billion joint venture between SABIC and Fujian Energy & Petrochemical Group, it is the largest foreign-invested project ever undertaken in Fujian Province and serves as a flagship initiative aligning China’s Belt and Road Initiative with Saudi Arabia’s Vision 2030. According to SABIC CEO Faisal Al-Faqir, the project exemplifies strong governmental support across Chinese administrative levels — including efficient coordination, streamlined approvals, and pragmatic daily problem-solving — underscoring China’s continuously improving investment environment. Crucially, SABIC views China not merely as a sales market but as a long-term growth partner and leading innovation hub; the project’s output will directly support strategic Chinese industries such as new energy vehicles, high-end semiconductors, and photovoltaics, while securing chemical raw material supply for domestic and broader Asian industrial chains. This reflects SABIC’s deep integration into China’s industrial ecosystem — spanning production, R&D, and customer service across 17 Chinese cities — and its sustained, multi-billion-yuan commitment to expanding manufacturing and innovation capacity on the ground.

Beyond the Gulei project, what other major investments is SABIC pursuing in China, and how do they reinforce its integrated industrial strategy?

In addition to the Gulei Ethylene Project, SABIC is advancing two other major initiatives in China: first, continuing joint development of the Jintang New Materials Project in Zhoushan, Zhejiang, with Rongsheng Petrochemical Co., Ltd.; and second, building a new thermoplastic engineering plastics alloy plant in Fujian Province. These projects are explicitly designed to operate in tight synergy with SABIC’s existing innovation and manufacturing network across China, aiming to accelerate innovation cycles and strengthen supply chain resilience. As stated by CEO Faisal Al-Faqir, this coordinated expansion is made possible by — and actively leverages — China’s comprehensive industrial ecosystem, enabling SABIC to respond rapidly to evolving market demands. Collectively, these investments demonstrate SABIC’s long-term, multi-pronged commitment to deepening its physical and operational footprint in China — moving far beyond early-stage product exports to establishing localized, large-scale, technologically advanced, and strategically interlinked production and R&D capabilities that serve both domestic and regional markets.

SABIC: Complete Industrial System Boosts Capital Increase and Expansion

Aug 6, 2026

SABIC's 1.8 million ton/year ethylene project in Fujian entered trial operation, part of a 44.8 billion RMB investment strategy. The company plans additional material plants, strengthening its role in China's chemical supply chain.

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