Rongsheng Petrochemical and SABIC Forge Strategic Partnership to Reshape Global Chemical Supply Chain

Rongsheng Petrochemical Co., Ltd. (SZ:002493) has announced a landmark strategic partnership with Saudi Basic Industries Corporation (SABIC), one of the world's leading diversified chemical companies. The agreement, formalized through the signing of a Project Development Agreement for new projects, marks a deep binding partnership between two petrochemical giants from China and Saudi Arabia, aimed at building a secure, efficient, and mutually beneficial global chemical industry supply chain.

Under the agreement, Rongsheng Petrochemical, together with its wholly-owned subsidiary Rongsheng New Materials (Zhoushan) Co., Ltd., has officially initiated equity investment evaluation with SABIC. SABIC plans to acquire a 30% to 50% stake in Rongsheng New Materials, enabling comprehensive collaboration across capital, technology, distribution channels, and operations.

The partnership focuses on the Jintang New Materials Project, targeting high-growth sectors including electronic materials, specialty engineering plastics, and high-performance resins. These strategic areas aim to break the long-standing pattern of China's dependence on imported high-end new materials.

Rongsheng Petrochemical is one of China's leading petrochemical and chemical fiber enterprises. The company has established a complete industrial chain spanning refining, aromatics, olefins, and downstream products including Purified Terephthalic Acid (PTA), MEG, and Polyester (PET). As a national high-tech enterprise, the company has achieved internationally advanced???? in PTA production processes, polyester technology, and process flows.

In the first half of 2026, the company achieved projected net profit of 5.00–5.20 billion yuan, representing year-on-year growth of 730.45%–763.67%. In Q1 2026, revenue reached 60.63 billion yuan with net profit of 2.82 billion yuan, up 378.46% year-on-year.

SABIC (Saudi Basic Industries Corporation) is a globally leading diversified chemical company founded in 1976 and headquartered in Riyadh, Saudi Arabia. The company is 70% owned by Saudi Aramco and operates across more than 50 countries worldwide with over 60 manufacturing plants, more than 26,000 employees, and major industrial complexes in Jubail and Yanbu, Saudi Arabia.

SABIC's core business segments include chemicals and plastics, agricultural nutrients, specialty materials, and steel operations. The company is not merely a traditional petrochemical enterprise but a critical global supplier serving AI computing infrastructure, new energy vehicles, aerospace, high-end manufacturing, and medical precision materials.

SABIC possesses world-class technology platforms including EXTEM™ ultra-high heat-resistant resins for data centers and optical communications, NORYL™ resins for 5G base stations and high-speed servers, LNP™ compounds for server components and consumer electronics, and ULTEM™/SILTEM™ eco-friendly high-heat resins for aviation and electrical systems.

Following the announcement on July 30, 2026, Rongsheng Petrochemical's share price rose 2.88% with trading volume of 772 million yuan and net institutional inflow of 70.24 million yuan.

Xiang Jiongjiong, General Manager of Rongsheng Petrochemical and Vice Chairman of Zhejiang Rongsheng Holding Group, was named to ICIS's "Top 40 Most Influential Chemical Leaders Globally" in 2026 and was previously listed on Forbes' "China Best CEOs" ranking in 2021.

Industry analysts describe this partnership as a landmark achievement in complementary development between China's and Saudi Arabia's chemical industries. The collaboration represents an important practice in building a new pattern of secure, efficient, open, and mutually beneficial global chemical industry supply chains.

Key benefits include localization of SABIC's advanced specialty materials technology through the Jintang project, filling domestic supply gaps in high-end electronic materials and specialty engineering plastics, strengthening the global supply system for high-end chemical materials, and transforming Rongsheng Petrochemical from traditional refining to high-end new materials.

Standing at a critical juncture of global industrial restructuring, Rongsheng Petrochemical is leveraging this strategic partnership to reshape its industrial and value growth logic. The company aims to build a world-class high-end new materials industrial platform, playing a supporting role and serving as a benchmark demonstration in the construction of a new global chemical industry supply chain.