10 May 2009
Jubail -- The Saudi Basic Industries Corporation (SABIC) and the Saudi International Petrochemical Company (SIPCHEM) announced yesterday that they have signed a Memorandum of Understanding (MOU) for mutual cooperation in the setting up of new projects in Jubail.
The two companies will use the existing surplus production capacities to utilize The Petroleum and Mineral Resources Ministry's allocated raw materials to produce a number of specialty petrochemical products, according to a press release of SABIC issued on Sunday.
Under this MOU, SABIC will implement several new petrochemical projects in the Kingdom of Saudi Arabia at a preliminary estimated value of SR 12 billion (US$ 3,2 billion).
This is comprised of seven plants for the production of 250,000 tons of methyl metha acrylate (MMA); 30,000 tons of poly methyl metha acrylate (PMMA); 200,000 tons of acrylonitrile; 50,000 tons of polyacrylonitrile; 50,000 tons of polyacetyl resins, 3,000 tons of carbon fiber and 40,000 tons of sodium cyanide annually.
SIPCHEM will build two plants at a preliminary estimated cost of SR 3 billion (US$ 810 million) for the production of 125,000 tons of poly vinyl acetate and 200,000 tons of ethylene vinyl acetate annually. These plants are expected to go on-stream by mid 2013.
According to the MOU, a SABIC manufacturing affiliate will crack the feedstock allocated to SIPCHEM and also provide it with ethylene. One of Sipchem's manufacturing companies will supply carbon monoxide to SABIC for the production of MMA.
The two companies will move forward on these projects after the completion of economic studies and legal procedures. Studies on the appropriate technology required for these projects are currently under way.
As these industries are largely research-dependant, SABIC and SIPCHEM will establish specialized R&D (Research and Development) centers to develop product applications. Their aim will be to promote and encourage local industries, especially in the areas of automotive parts, electrical appliances, household commodities, computers and electronic equipment and health care and provide support to national downstream industries, especially the plastic industries sector.
The MoU was signed by Mutlaq H. Al-Morished, SABIC Vice President, Corporate Finance, and Ahmad Al-Ohali, SIPCHEM CEO, the press release disclosed.
Jubail -- The Saudi Basic Industries Corporation (SABIC) and the Saudi International Petrochemical Company (SIPCHEM) announced yesterday that they have signed a Memorandum of Understanding (MOU) for mutual cooperation in the setting up of new projects in Jubail.
The two companies will use the existing surplus production capacities to utilize The Petroleum and Mineral Resources Ministry's allocated raw materials to produce a number of specialty petrochemical products, according to a press release of SABIC issued on Sunday.
Under this MOU, SABIC will implement several new petrochemical projects in the Kingdom of Saudi Arabia at a preliminary estimated value of SR 12 billion (US$ 3,2 billion).
This is comprised of seven plants for the production of 250,000 tons of methyl metha acrylate (MMA); 30,000 tons of poly methyl metha acrylate (PMMA); 200,000 tons of acrylonitrile; 50,000 tons of polyacrylonitrile; 50,000 tons of polyacetyl resins, 3,000 tons of carbon fiber and 40,000 tons of sodium cyanide annually.
SIPCHEM will build two plants at a preliminary estimated cost of SR 3 billion (US$ 810 million) for the production of 125,000 tons of poly vinyl acetate and 200,000 tons of ethylene vinyl acetate annually. These plants are expected to go on-stream by mid 2013.
According to the MOU, a SABIC manufacturing affiliate will crack the feedstock allocated to SIPCHEM and also provide it with ethylene. One of Sipchem's manufacturing companies will supply carbon monoxide to SABIC for the production of MMA.
The two companies will move forward on these projects after the completion of economic studies and legal procedures. Studies on the appropriate technology required for these projects are currently under way.
As these industries are largely research-dependant, SABIC and SIPCHEM will establish specialized R&D (Research and Development) centers to develop product applications. Their aim will be to promote and encourage local industries, especially in the areas of automotive parts, electrical appliances, household commodities, computers and electronic equipment and health care and provide support to national downstream industries, especially the plastic industries sector.
The MoU was signed by Mutlaq H. Al-Morished, SABIC Vice President, Corporate Finance, and Ahmad Al-Ohali, SIPCHEM CEO, the press release disclosed.
© Saudi Press Agency 2009
