Arlanxeo, a wholly owned subsidiary of Saudi Aramco, has started construction of a hydrogenated nitrile butadiene rubber (HNBR) plant in Changzhou, Jiangsu province in China, according to a media report.

The plant, which has an annual production capacity of 5,000 tonnes, is expected to start production in the third quarter of 2025, China Daily newspaper reported.

The first phase will have a production capacity of 2,500 tons of high-quality rubber annually.

Earlier this week, Aramco entered into discussions with Hengli Group Co. regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co.

The Saudi oil giant has been ramping up its China presence in a string of deals in refining and petrochemicals. Aramco CEO Amin Nasser said earlier this year that China's demand for oil is healthy and growing.

(Writing by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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