Sinopec has started construction of a Rmb14bn ethylene plant in Wuhan, capital of Hubei province.

The plant will have a production capacity of 800,000 tonnes a year, according to a government statement.

Sinopec owns a 65 per cent share in the chemicals facility, with the remainder held by South Korea’s largest refiner, SK Energy.

The investment is part of the central government’s plan to build major ethylene production bases in central and western parts of the country, where demand for petrochemicals is growing particularly fast.

In addition to the 800,000 tonnes of ethylene, the project will also produce important petrochemical products, including 300,000 tonnes a year of high-density polyethylene, 300,000 tonnes a year of linear low-density polyethylene and 400,000 tonnes a year of polypropylene.