Saudi Basic Industries Corporation (Sabic), the world’s biggest petrochemicals exporter, has signed an agreement with China’s Shenhua Ningxia Coal Industry Group, which could see the Saudi firm building a complex in China.

Sabic will conduct a study and “in light of the results of the study referred to, the parties will take the investment decision to develop the project”, the firm said in a statement to the Saudi Stock Exchange (Tadawul), where its shares are traded.

The joint project will be a “greenfield petrochemicals complex” located in the Ningxia Hui region of China. Sabic’s Chinese counterpart for the scheme is a unit of Shenhua Group Corporation.

Sabic has not revealed financial details or a time frame for the project if a decision to build the complex is made. The firm said the agreement is in line with its policy of geographical diversification of its operations.