Entity

Sinopec INEOS (Tianjin) Petrochemical Co., Ltd., known in China as Sino-British Petrochemical and abbreviated SIPC, is a petrochemical company based in the Nangang Industrial Zone of the Tianjin Economic-Technological Development Area. It was set up as a 50:50 joint venture between China Petrochemical Corporation (Sinopec) and the INEOS Group, and it is one of Sinopec's major petrochemical projects developed with a foreign partner. The project was launched in 2023 with a reported total value of about USD 7 billion.

Ownership and corporate history

SIPC was created to build and operate an integrated ethylene-based petrochemical complex in Tianjin, with Sinopec and INEOS each holding half of the equity.

INEOS first publicly indicated its intention to negotiate an exit in November 2025. After about seven months of talks, it signed a formal exit agreement with Sinopec in June 2026, giving up all of its investment rights in the company. INEOS disclosed the agreement in its second-quarter 2026 financial report, published in late July 2026, and announced the full withdrawal on 3 August 2026.

Under the agreement, INEOS pays Sinopec an exit fee of USD 120 million in equal instalments over 24 months, starting in March 2027. INEOS has derecognised its 50% equity investment and the related financial liabilities, which together amounted to approximately EUR 575.7 million. With the transaction, Sinopec takes full ownership of the company.

Business activity

SIPC produces and sells petrochemicals and polymers. Its operations are led by a 1.2 million tonne per year steam cracking unit, with downstream production along the C₂ and C₃ product chains and the supporting utilities, storage, transportation and auxiliary facilities.

Technology and product positioning

SIPC combines Sinopec's proprietary technology with imported technology. Its strategy is to produce high-end, differentiated materials that replace imports and fill gaps in the Chinese market. Its flagship products include:

• medical-grade, low-odour high-density polyethylene
• high-performance metallocene linear low-density polyethylene
• PE100 polyethylene for colour-matched gas pipes
• polyolefin thermoplastic elastomers (POE)
• high-carbon alpha-olefins
• ultra-high molecular weight polyethylene

The company also supplies a range of specialty chemical materials and high-end special chemicals intended to support the development of downstream industries in China.

Role for its shareholders

For Sinopec, SIPC is a strategic project in its foreign-cooperation portfolio and now a wholly owned asset in the Tianjin petrochemical cluster. For INEOS, the venture was part of a wider partnership with Sinopec in China, which also includes its 50% interest in Shanghai SECCO. The exit reflects INEOS's decision to reduce its exposure to commodity petrochemicals in China, where competition and margin pressure remain intense.