Tuesday, Sep 21, 2010
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RIYADH (Zawya Dow Jones)--Saudi Kayan Petrochemical Co. (2350.SA), an affiliate of petrochemical giant Saudi Basic Industries Corp. (2010.SA), will start commercial production at its petrochemical complex in Jubail on the Persian Gulf late next year, a top company official said Tuesday.
The firm, which previously said it expected to start trial operations at its main units in the third quarter this year, shipped this week its first cargo of glycol to China, Mutlaq Al Morished, who is also Sabic's chief financial officer, told Zawya Dow Jones.
The 5,000 ton glycol shipment is part of the company's trial operations and will not be reflected in its financial statement, Al Morished said.
Last month, Kayan said it secured a seven-year, 4.5 billion Saudi riyal ($1.2 billon) loan from National Commercial Bank, or NCB, to cover part of $2.5 billion in cost increases in building its petrochemical complex in Jubail.
The petrochemical maker is currently in talks with one bank to secure the remaining SAR4.5 billion to cover the escalation in cost, Al Morished said without giving further details.
Kayan in July said the total cost of the planned complex is expected to be 24% above its original budget.
The Kayan complex is expected to have a total annual production capacity of around 5.6 million metric tons of petrochemical and chemical products when it comes on stream.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2010 Dow Jones & Co.
(END) Dow Jones Newswires
21-09-10 1310GMT
