Wanhua Chemical Group Co., Ltd. and Petrochemical Industries Company (PIC) Sign Joint Venture Agreement
On April 25th, at the headquarters of Wanhua Chemical Group in Yantai City, Shandong Province, Wanhua Chemical Group Co., Ltd. (hereinafter referred to as "Wanhua Chemical") and Petrochemical Industries Company (herein referred to as "PIC", a wholly-owned subsidiary of Kuwait Petroleum Corporation "KPC") officially signed a joint venture agreement, with PIC investing $638 million to subscribe to a 25% of the shares of Wanhua Chemical's wholly-owned subsidiary, Wanhua Chemical (Yantai) Petrochemical Co., Ltd.
Before the signing of the agreement, PIC had successfully completed the bidding process on April 22nd, 2025, at the Shandong United Property Rights Trading Center.
The signing of this agreement marks an important milestone in the many years of cooperation between Wanhua Chemical and PIC, signifying the entry into a new phase of strategic cooperation between the two parties, and also reflecting their joint commitment to promoting the development of the global petrochemical industry.
In the presence of Chairman of Wanhua Chemical Group, Liao Zengtai, and Deputy Chairman and CEO of Kuwait Petroleum Corporation, Shaikh Nawaf Al Sabah, President of Wanhua Chemical Group, Kou Guangwu, and CEO of PIC, Nadia Al Hajji, officially signed the joint venture agreement.
Regarding this joint venture between Wanhua Chemical and PIC, President Kou Guangwu of Wanhua Chemical Group said: Since leading Wanhua's business team to visit Kuwait Petroleum for the first time in 2013, we have been the first to sign a long-term LPG supply agreement with Kuwait Petroleum, becoming the first enterprise in China to directly participate in the allocation of Middle Eastern LPG resources, creating an energy artery connecting the Persian Gulf and the Bohai Sea. These direct cooperations have not only ensured the stable operation of Wanhua Yantai's petrochemical facilities but also laid a solid foundation for Wanhua Chemical to become the first Chinese enterprise with the right to recommend CP prices. Today, the signing of the joint venture agreement between Wanhua Chemical and PIC is not only a comprehensive upgrade of past cooperation but also another model of Sino-Ku cooperation. We look forward to using this joint venture as a new starting point, continue to expand the field of joint cooperation, share missions, lead changes, and accelerate the pace of "oil transformation", promote the petrochemical industry's transition from "high carbon manufacturing" to "low carbon recycling", promote the deep integration of the "Belt and Road" initiative with the "Kuwait 2035 National Vision", and create a new situation for joint development.
CEO of PIC, Nadia Al Hajji, said: The joint venture is of great significance and far-reaching implications. She emphasized the strategic importance of the project, noting that it will not only create value through the joint petrochemical assets but also promote mutual development and innovation between the two parties. The joint venture between PIC and Wanhua Chemical reflects the common vision, high trust, and consistency in promoting innovation, development, and creating long-term value between the two parties. Nadia Al Hajji expressed her sincere gratitude and affirmed that this cooperation will be the cornerstone for PIC's continued development in Asia and broader regions. "I would like to express my heartfelt thanks to everyone who has worked hard to make this cooperative relationship a reality. From the teams working tirelessly behind the scenes to the leaders who support this vision - it is your dedication that has made this proud moment possible."
Shaikh Khaled Al Sabah, Director and General Manager of International Marketing at Kuwait Petroleum Corporation, expressed his gratitude to all the leaders, employees of Wanhua, and relevant personnel of Kuwait for their efforts in facilitating the good cooperation between PIC and Wanhua! He emphasized the long-standing cooperative relationship between Kuwait Petroleum and Wanhua Chemical, which began with long-term supply agreements years ago, laying a solid foundation of trust, responsibility, and mutual respect between the two companies, and looking forward to further deepening exchanges and strengthening cooperation to achieve mutual benefit and win-win, and continuously achieve new and greater achievements. "I would like to take this opportunity to wish PIC and Wanhua Chemical all the best on this journey together."
Shaikh Nawaf Al Sabah, Deputy Chairman and CEO of KPC, made a concluding speech on behalf of KPC: Congratulations on the successful signing. He mentioned that Kuwait's diplomatic relations with China are long-standing, and that Kuwait is one of the first supporters of China's "Belt and Road" initiative. In the future, Kuwait will continue to be a good friend of China. He emphasized that the agreement signed between PIC and Wanhua Chemical is of milestone significance, marking the largest petrochemical investment by Kuwait in China, and also an important milestone in the long-standing friendly relations between the two countries. He said that this joint venture, based on the traditional supply relationship, demonstrates KPC's determination to transform the traditional supply relationship into a strategic cooperative relationship oriented towards value creation. "Today marks another step in our strategy to transform our carbon hydrogen compound supply relationship into a long-term partnership. In this sense, the cooperation between PIC and Wanhua Chemical on the Yantai Petrochemical PDH integrated project reflects the common vision of both parties in terms of industrial development, value creation, and long-term cooperation."
Chairman of Wanhua Chemical Group, Liao Zengtai, on behalf of Wanhua Chemical, made a concluding speech: He highly praised the friendship between Wanhua Chemical and KPC, the highly compatible development concepts of both parties, the deepening mutual trust, and the continuously expanding scale of cooperation are the solid foundation for the historical cooperation and future joint development. The signing of this joint venture agreement marks the entry into a new era of friendly relations between the two parties, and in the future, both parties will fully leverage their respective industrial advantages and resource endowments to achieve complementary advantages on a larger scale, broader fields, and deeper levels, helping both parties' cooperation to reach new heights. He believes that with the joint efforts of Wanhua Chemical and Kuwait Petroleum Corporation (KPC), this cooperation will definitely yield fruitful results, contributing to the construction of a world-leading high-end chemical new material industry base in the southern coast of the Bohai Sea, and providing greater strength to Yantai in building a central city in the Bohai Rim.
The signing ceremony was presided over by Chen Yifeng, Senior Vice President and Chairman of Wanhua Chemical (Yantai) Petrochemical Co., Ltd., and was attended by Feras Al Awad, Deputy CEO of PIC's Projects and Business Development, Li Min, Vice President of Wanhua Chemical, and other senior leaders and project team members from both sides.
This joint venture between Wanhua Chemical and PIC will help improve the internationalization level of the Bohai Sea coast, the business environment for foreign merchants in China, attract more high-quality foreign capital, promote the coordinated development of the chemical and petroleum industries to new heights, promote economic development, and lead the new trend of petrochemical industry development!
Source: Wanhua Chemical
