Tuesday, Jul 31, 2012
(This story was originally published Monday)
RIYADH (Zawya Dow Jones)--Saudi Basic Industries Corp. (2010.SA), or Sabic, and ExxonMobil Chemical, a part of U.S.-based Exxon Mobil Corp. (XOM), expect to start production at their synthetic rubber plant in Jubail Industrial City in the second half of 2015, executives at the two companies said Monday.
The start of production at the $3.4 billion plant--expected to produce 400,000 tons of various synthetic rubbers a year--would have an immediate impact on company results, a Sabic vice president for petrochemicals, Jacobus Van Haasteren, told reporters at a press conference in Riyadh.
The plant will produce butyl rubber and other synthetics for tires and other automotive parts and industrial applications, executives said.
The two parent companies have not yet settled on what mix of external or internal financing to use to fund the plant, said Steve Pryor, president, ExxonMobil Chemical.
"It's just a matter for our finance people to identify the optimal" methods of funding, Pryor said.
Sabic and ExxonMobil hope to attract clients for synthetic rubber in the Middle East, Asia and Africa in particular, executives said.
Sabic shares are trading +1.1% at 89.25 Saudi riyals ($23.79) in a broadly positive Saudi stock market Monday.
-By Ellen Knickmeyer, Dow Jones Newswires, +971 55 1093359, email@example.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires