China Resources Chemical Innovative Materials Holdings has recently received US$25 million investment from British BP Petroleum, which has thus become one of the shareholders, whilst the parties entered into a strategic cooperation agreement to strengthen cooperation in the procurement of refined terephthalic acid (PTA) which is the raw material in the production of polyethylene terephthalate (PET). This would engage both upstream and downstream industrial chains in practicing in-depth integration, so as to work together to further develop the global market.

PET is the main raw material in the production of plastic bottles. China Resources Chemical Innovative Materials has the top bottle-grade polyester chip production capacity within both China and the world. The expected polyester production capacity in future will reach 2.2 million tons. As the upstream product of PET, PTA is the substance of polyester, which is widely used in the production of plastic bottles. BP is a constant supplier of China Resources Chemical Innovative Materials for PTA. Its Zhuhai flagship plant is BP's largest plant for PTA in the world. With a total production capacity of 2.7 million tons, the project is one of the most efficient PTA plants in the world.

With leading independent research and development capabilities, China Resources Chemical Innovative Materials is further expanding into highly value-added cost-efficient downstream materials, such as PETG and polyester foam materials. Meanwhile, as one of the world's largest energy and chemical companies, BP continuously improves the technology of PTA production and reduces cost of production with more advanced production and management experience. Besides, BP developed an advanced plastic recycling technology last year called BP Infinia. This technology can turn PET waste that is currently not easily recycled into new and pure PET raw materials. The cooperation between the parties will lead the development of the recycling economy in the industry.

BP indicated that, as the concept of low-carbon sustainable development continues to popularize within society and with the consumption upgrades of green and environmental friendly packaging products of the public, the strong alliance of BP and China Resources Chemical Innovative Materials will provide momentum for the continued expansion of the industry capacity to reduce enterprises’ investment on heavy assets in a more flexible way and speed up the integration progress of the polyester industry. The alliance between the parties not only opens up the market, but also promotes the sustainable development of the industry. It combines the advanced technologies and concepts of both parties, jointly creates a bright future of new polyester technologies, new products and new applications, and will lead the low carbon future development in China and the world.