Saudi Basic Industries Corporation, the Middle East's biggest petrochemicals company, and China Petroleum and Chemical Corporation (Sinopec) have started the commercial operation of their new polycarbonate plant in Tianjin city in China, Saudi Press Agency reported on Friday.

The new production centre is situated within the Sinopec-Sabic-Tianjin Petrochemical complex jointly owned by Sabic and Sinopec.

Established in 2009, the vast Tianjin petrochemical complex consists of nine manufacturing units that are designed to produce polyethylene, polypropylene and other chemicals.

The production capacity of the new plant is 260,000 tonnes per year, SPA reported.

Abdul Rahman Al Fageeh, Sabic’s chief executive, said his company and Sinopec are pursuing mutual growth opportunities that align with goals of the national programmes of Saudi Arabia and China, the Saudi Press Agency reported.

The value of the global petrochemicals industry is projected to grow to about $800 billion by 2030, up from about $475 billion in 2020, according to Precedence Research.

Sabic is playing a key role in Saudi Arabia's plan to reduce its reliance on oil exports.

It reported an 85 per cent annual drop in second-quarter net profit as demand slumped and prices of its products fell.

Net profit after zakat and tax in the three months to the end of June fell to 1.18 billion Saudi riyals ($314.5 million), Sabic said. Revenue during the period fell nearly 34 per cent to 37.17 billion riyals.

Despite current market challenges, Sabic approved a cash dividend of 1.80 riyals per share for the first half of this year.

Last year, the company announced plans to set up a plant to convert crude oil into petrochemicals in Ras Al Khair, with a capacity of 400,000 barrels per day.

In December, Sabic signed an agreement with Oman’s state energy company OQ and Kuwait Petroleum International to set up a petrochemical complex in the Sultanate.