DAMMAM: The Eastern Province-based Dammam 7 Petrochemical Co. has signed an agreement with Shanghai Huayi for acrylic acid factory in Jubail.
"This project is unique," said Bader Abdul Aziz Kanoo, chairman and managing director, Dammam 7. "It is a key Sino-Saudi partnership in the area of manufacturing and specialized services and will strengthen China's position in the local market. It will help transfer technology and knowledge to Saudi Arabia."
The factory will be part of a huge petrochemical complex. Acrylic acid and its derivatives are a key factor in the Saudi downstream industry.
Dammam 7 has already signed an agreement with Saudi Aramco Total Refining and Petrochemical Co. (SATORP) for the supply of 200,000 tons of raw material worth SR3 billion.
Along with the production from the acrylic acid plant, the Dammam 7 Petrochemical complex will include production of syngas, butanol and acrylic esters.
The company's products, particularly propylene, play a significant role in the petrochemical industry in the Kingdom besides exporting to the regional and international markets.
© Arab News 2010
