ExxonMobil buys naphtha as China petchem complex enters test runs, sources say
1. ExxonMobil has acquired naphtha shipments for a new $10 billion plant in China. 2. The formal start-up of the petrochemical complex signals growth potential for XOM.
FAQ
Why Bullish?
The investment in a $10 billion facility demonstrates ExxonMobil's commitment to growth in Asia. Historically, large capital expenditures in expanding markets have resulted in price appreciation.
How important is it?
The strategic development in China indicates a strong growth trajectory for ExxonMobil, vital for investor confidence and market perception.
Why Long Term?
The establishment of the petrochemical plant could enhance profitability over several years, akin to past expansions in emerging markets that yielded sustained returns.