The project is located at Jinshan, which is 80km to the south of Shanghai in north eastern China, a hub of petrochemical development in China. The site was chosen as the locus of a major ethylene production site by Sinopec and BP Amoco. The resins plant is an altogether more modest enterprise than its giant $2.5bn neighbour.
The Jinshan Hydrocarbon Resins Company is a joint venture between ExxonMobil Chemical Company and Sinopec Shanghai Petrochemical Company Limited (SPC). The resins joint venture was set up in the last quarter of 1999. ExxonMobil Chemical Company and SPC have 60% and 40% interest in the plant respectively.
The integrated petrochemical complex is one of the largest projects in China. It processes crude oil into a number of products such as diesel, gasoline and jet fuel.
Construction on the project began in the second half of 1998, and the project was finished on time in the second quarter of 2000. The cost of the project was CHY239.8m ($29m).
The capacity of the plant is 26,000t/yr. The plant uses ExxonMobil Chemical's proprietary hydrocarbon resins technology, and markets its adhesives and sealants products under ExxonMobil's Escorez trademark. The production also includes 955,000t of plastic resins, 1,140,000t of synthetic fibre feedstock, 589,000t of synthetic fibre polymers and 436,000t of synthetic fibres of chemical products annually.
The new plant is intended to serve hydrocarbon resin markets in China as well as the rest of Asia-Pacific. Adhesive products made of hydrocarbon resins are used in various industrial and consumer goods, such as road markings, tyres, adhesive tapes, corrugated boxes and packaging material.
The strong growth of the Chinese economy will create similarly strong demand for these product areas. As the regional market recovers, it may be expected that the demand in other Asian countries will increase by rates as rapid as their general economic growth. The complex has its own environmental protection system, and utilities a network of highway and railway transportation.
The Sinopec Shanghai Petrochemical Company runs a refinery in its complex at Jinshanwei and processed 14 million tons of crude oil in 2008, where it also has two ethylene plants of 845,000t capacity, a 2.64 million tons organic chemical feedstock production plant and associated units. Future growth in oil, gas and petrochemicals is expected to concentrate around this location.
In addition to the Jinshan project, Exxon Chemical and Jinzhou Petrochemical signed a 50/50 joint-venture agreement to renovate Jinzhou's existing lubricants additives installations in China in the last half of 1998. The two companies produce lubricant additives for the world market.
Construction work on the old installations began in 1998, and the units' output was largely sold in China under Exxon's Paramins brand name. In 1995 the partners formed another joint venture (Jinzhou Jinex Lubricant Additive) on the same site that makes additives, such as detergent inhibitors and viscosity improvers.
The company's investments in China also include an integrated world-scale refining and chemical complex in Fujian Province, which is a joint venture between Sinopec, Saudi Aramco and ExxonMobil.