Chinese companys 6 bln USD investment in Brunei win-win for both sides

HANGZHOU, Nov. 30 (Xinhua) -- A privately-owned company in east China's Zhejiang province said Wednesday its 6-billion-U.S.-dollar investment in a petrochemical plant in Brunei benefits both sides.

The remarks are meant to dispel the skepticism that often triggers controversy and sometimes blocks overseas investment plans by Chinese companies, researchers said.

Last week, Icelandic authorities rejected a land purchase plan by a privately-owned company in Beijing that would have built a high-end resort with an investment of 200 million U.S. dollars.

Zhejiang Hengyi Group Co., China's largest chemical-fiber supplier for the textile industry, said in a statement it will build a petrochemical plant with a total investment of 6 billion U.S. dollars in the oil- and gas-rich ASEAN member state.

The project, the largest overseas investment by a privately-owned Chinese firm, is designed to process 15 million tonnes of crude oil a year and churn out products such as p-xylene and aromatic hydrocarbon.

Brunei Shell Petroleum Co. signed an agreement with Zhejiang Hengyi to provide crude oil supplies for the project, which has been approved by the Brunei government.

Qiu Jianlin, chairman of Zhejiang Hengyi, said the plant aims to help reduce the company's reliance on imports of petrochemical products. Currently, 60 percent of its consumption of p-xylene comes from imports.