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Japan : Sumitomo acquires a share in CEPSA Quimica China
Publish Date : 14-Apr-2014
The resulting company will be a Joint Venture, owned 75% by CEPSA and 25% by Sumitomo. This agreement brings together CEPSA's long experience in petrochemicals with the Asian market trading leading capabilities and expertise of Sumitomo.
CEPSA and Sumitomo Corporation (hereunder “Sumitomo") have entered into an agreement for the Japanese company to acquire 25% of CEPSA Química China, until now 100% owned by CEPSA. Welcoming Sumitomo into the fold of the company's shareholding structure means that this business - a leader in various industries - will give a boost to a petrochemical factory construction project in Shanghai, in which CEPSA has been involved since 2011.
In the words of CEPSA CEO Pedro Miró “welcoming a partner like Sumitomo is, for us, a major opportunity, as their company has built up vast industrial experience in the Asian region and is a leader in the commercialisation of various products. We are convinced that our business activities in China will experience a major boost and that this agreement will allow us greater flexibility to adapt our operations to the requirements of Chinese and Asian markets."
In turn, President & CEO Kuniharu Nakamura from Sumitomo added that "There are many different markets in China that are growing at a remarkable pace, such as the automotive sector. Participating in this company is, for us, an opportunity to form part of a major, exciting and ambitious project and we are looking forward to seeing how it develops."
The plant that CEPSA is building in Shanghai through its subsidiary CEPSA Química China is currently undergoing the final phases of construction. Once complete, as well as having the capacity to produce 250,000 t/year of phenol, 150,000 t/year of acetone and 360,000 t/year of cumene, it will also make CEPSA the second largest producer of phenol in the world. This raw material is mainly used in the automotive and construction industries to manufacture plastics and phenolic resins.
The agreement will combine Sumitomo's world class Asian market trading capabilities with CEPSA's experience in the petrochemical sector, in which it has been active for over 40 years through its subsidiary CEPSA Química.
CEPSA, 100% owned by IPIC, is an energy group with a workforce of close to 10,000 employees, engaged in activities that span the hydrocarbon value chain: exploration and production of oil and gas; refining, transportation and marketing of petroleum products and natural gas; biofuels; and electricity cogeneration and sales. CEPSA has developed a world-class chemicals division that is tightly integrated with its oil refining segment, where feedstock is manufactured and sold for the production of high value-added components chiefly used in making new-generation plastics and biodegradable detergents.
