BEIJING- China Petroleum and Chemical Corporation (Sinopec) and SK Group, the third largest conglomerate in the Republic of Korea, signed a memorandum on Friday to step up cooperation between the two giants.

According to the memo, the two sides will further discuss on an ethylene joint venture with annual capacity of 800,000 metric tons in Wuhan and widen business cooperation, Sinopec said in a statement on its website.

The two groups formed a 50-50 joint venture to set up a solvent manufacturing plant in Shanghai in 2004.

Sinopec is the China's largest oil refiner while SK group is a giant in the petrochemical industry, communication, biological medicine and real estate.