Ineos is close to reaching a settlement of its intellectual property complaint against Chinese state-owned chemical giant Sinopec, Jim Ratcliffe, chairman of the petrochemicals giant has told journalists.

The Swiss-based group had threatened to take Sinopec to court, alleging that Sinopec had built a new acrylonitrile plant using its technology without a licensing agreement.

Ineos and Sinopec are nearing the settlement “based on a thorough discussion of the subject, based on a good relationship, a good understanding,” Ratcliffe said.

Ineos also had put a planned phenol plant in Nanjing – a joint venture with Sinopec – on hold because of the dispute. Subsequently, however, Ineos’ European rival Cepsa of Spain (the two companies are world’s largest producers of plastic ingredient phenol) inaugurated its own $300 million plant in eastern China.