China Petroleum & Chemical Corp’s (Sinopec) wholly owned subsidiary Gaoqiao Petrochemical based in Shanghai plans to acquire BP Plc’s 50 percent stake in SECCO Petrochemical for $1.68 billion. The deal is expected to close before yearend with the purchase price payable in installments.

SECCO is currently owned by BP, with a 50% interest, Sinopec (30%), and Sinopec Shanghai Petrochemical (20%), in which Sinopec holds a majority interest.

Based in Shanghai, SECCO’s primary production plants include a 1.09 million-tonne/year (MTPA) ethylene plant, a 1.09 MTPA ethane cracking plant, a 600,000-tonne/year (TPA) aromatics extraction plant, a 600,000 TPA polyethylene plant, and a 250,000 TPA polypropylene plant.

SECCO is a producer of olefins, polymers and other derivatives, including polyethylene, polypropylene, acrylonitrile styrene, polystyrene, butadiene, among others.

Since 1970, BP has had a petrochemicals business in China, first through technology licensing and then through manufacturing joint ventures. In addition to SECCO, BP has three other petrochemical manufacturing operations in China.

Gaoqiao Petrochemical operates 75 plants that produce gasoline, jet fuel, diesel fuel, base stock for lube oil, paraffin wax, synthetic rubber, commodity organic chemicals, synthetic plastics, and fine chemicals. The company’s current nameplate capacity includes a 1.13 MTPA refinery and 600,000 TPA of petrochemical products output.