This photo taken on March 29, 2023 shows the groundbreaking ceremony of a major chemical project, a joint investment initiative by China and Saudi Arabia, in Panjin City of northeast China's Liaoning Province. [Photo/Xinhua]

Construction of a major chemical project, which is a joint investment initiative by China and Saudi Arabia, commenced on Wednesday in Panjin City of northeast China's Liaoning Province.

The total investment of the project is 83.7 billion yuan (about 12.2 billion U.S. dollars), of which Saudi Aramco holds a 30 percent stake while the North Huajin Chemical Industries Group Corporation and Panjin XinCheng Industrial Group hold 51 and 19 percent, respectively.

After it is put into operation, the project is expected to become a world-class petrochemical and fine chemical industry base in China.

The joint venture Huajin Aramco Petrochemical Company (HAPCO) will be completed in 2025 and is expected to have an annual oil refining capacity of 15 million tonnes, and an annual production capacity of 1.65 million tonnes of ethylene and 2 million tonnes of P-xylene (PX).

According to Yan Zhe, deputy general manager of Norinco Group, the parent company of the North Huajin Chemical Industries Group Corporation, the project will generate an annual income of over 100 billion yuan, with a total profit of more than 10 billion yuan and tax revenue of over 20 billion yuan, upon completion.

"This complex is an important cornerstone of our efforts to support a world-class, integrated downstream sector here in China," said Mohammed AI-Qahtani, executive vice president of Saudi Aramco, at the groundbreaking ceremony.

The city of Panjin has built a 100,000-tonne widened deep-water channel, a 300,000-tonne crude oil wharf, and a sewage treatment plant with a treatment capacity of 60,000 tonnes a day to support the project.

Eight special wharf berths and dedicated railway lines have been reserved for the project.

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