Chemical brothers bond for strength

Although both plants are still awaiting final approval from the Chinese government, Ratcliffe says this will happen soon and he expects work to commence next year and production to begin in 2016.

The phenol plant is designed to produce 400,000 tons of phenol and 250,000 tons of acetone every year. Ineos claims that the plant will be the largest of its kind in China.

However, phenol is also a harmful substance that can irritate eyes and skin. If absorbed in large amounts it can damage the liver and kidneys. It has also raised environmental pollution concerns in China in recent years.

In 2012, water supplies in the Yangtze River became polluted after phenol leaked from a South Korean ship that was docked in Zhenjiang, in East China's Jiangsu province.

Ratcliffe, however, says Ineos places huge emphasis on the safe production of phenol. It will use the same quality standards it uses in the West in its Chinese facilities, he says.

Ineos also has huge expectations from Petroineos, the refining and trading joint venture set up in 2011 with PetroChina. Petroineos has two refineries, one in Lavera, France, and one in Grangemouth, Scotland. The Chinese energy company has invested $1 billion equity in these two refineries.

"We were looking for partners for these two refineries, especially companies that had a wider reach in the oil world. We looked at PetroChina five or six years ago. They were the best fit. It has been a good relationship since then," Ratcliffe says.

PetroChina has brought capital, huge experience in refining and its access to crude oil from Asian markets to the joint venture. Ineos' access to crude oil is focused more on Europe, he says.

The wider access to crude has helped the refineries reduce raw material costs and improve profitability, Ratcliffe says.

"I think it's more of a two- way relationship. We learn a lot from PetroChina, and they learn something from us. I think they respect our manufacturing capability and they want someone locally to manage the refineries."

Despite the promising prospects of the partnership, the joint venture has faced challenging times in recent years after the eurozone crisis made Europe's energy market inefficient and uncompetitive, Ratcliffe says.