Yantai, China | April 25, 2025

Kuwait’s Petrochemical Industries Company (PIC), a subsidiary of Kuwait Petroleum Corporation (KPC), has acquired a 25% stake in Wanhua Chemical (Yantai) Petrochemical Co., Ltd., marking the largest Kuwaiti investment in China’s petrochemical sector to date. The deal, valued at $638 million, gives PIC a significant interest in a cluster of advanced petrochemical units in Yantai, including facilities producing propylene oxide, tert-butyl alcohol, acrylic acid, and butyl acrylate.

This strategic move is designed to diversify PIC’s product portfolio and expand its footprint in the fast-growing Chinese market, while giving Wanhua improved access to Gulf feedstocks and a strong international partner. The partnership also underscores a broader industry trend: Gulf energy companies are shifting from traditional oil exports to integrated, value-added investments in Asia’s downstream sector.

The agreement was signed in Yantai by PIC CEO Nadia Al-Hajji and Wanhua Chemical President Qu Guangwu, in the presence of senior executives from both companies and Kuwait Petroleum Corporation (KPC). Citi acted as financial advisor and Ashurst as legal counsel for PIC.

The PIC-Wanhua alliance is expected to accelerate innovation, operational efficiency, and sustainable growth for both partners, positioning them to capitalize on Asia’s expanding demand for high-value petrochemicals.

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