Sinopec Shanghai Petrochemical Announces $2.91 Billion Investment to Upgrade Operations Sinopec Shanghai Petrochemical Company, a leading player in Chinas refining and petrochemical industry, has unveiled plans for a maiooperational overhaul, commiting 21.31 bilion yuan ($2.91 bilion) to boost its capacity and eficiengy. The investment is set to enhance thecompanys crude oil processing capabiltiles, streamline its refining operations, and improve the production of key materials in the chemicasector The extensive upgrade involves the decommissioning of 18 aging ol refining units, which wil be replaced with state-ofthe-art faciltiesdesigned to improve both operational efficiency and envronmental sustalinablity. The newly instaled refining unts will have a combinecethylene production capacity of 1.20 milion tons per year, a significant increase that will boost sinopec Shanghai Petrochemicals output olessential chemicals. Ethylene is a critical building block for a wide range of petrochemical products, including plastics, detergents, anosynthetic fibres, making this upgrade a crucial step for the company in meeting growing demand for these materialsThe company has outlined a strategic vision to increase the production of high-vale new material products, incuding advanced polymersand other chemicals used in industries such as automotive, electronics, and heathcare. By enhancing its refining infrastructure, SinopecShanghai Petrochemical is positioning itself to address market shits toward more sustainable, high-performance materials that areincreasingly in demand across diverse sectors The investment plan also indudes initiatives to expand the companvs raw matenial production capacitv which will provide critical feedstocifor both domestic and global markets. This move comes as Sinopec Shanghai Petrochemical seeks to secure a competitive edge in arincreasingly volatle clobal chemical market, driven by shiting demand patterns, environmental reoulations, and the transition to moresustainable production methods. The ambitlous upgrade is expected to take three years to complete, pending shareholder approval. Once the main construcion phaseconcludes, sinopec Shanghai Petrochemical aims to have a more fexible and reslient production setup, able to adapt to changing marketconditions and technological advancements. With the addition of advanced refning units, the company will also reduce its carbon footorintby improving energy efficiency and adopting cleaner processing technologies.As part of its broader strategy, sinopec Shanghai Petrochemical is commited to supporting China's national goals for reducing industriaemisslons and promotng sustanable orowth in the chemicalindustry, he comoanys uoorade not only strenothens is postion as a malolplaver in the petrochemical market but also alians with global trends toward more sustainable and effcient chemical manufacturincprocesses. With this $2.91 bilion investment, sinopec Shanghai Petrochemical is poised to redefine its operations, enhance its product offerings, andcontrilbute to the broader transition toward a more sustainable and circular economy in the global chemical sector.