Sabic, Celanese Ink $400M Deal To Build Jubail Polyacetal Plant

Thursday, Apr 01, 2010

DUBAI (Zawya Dow Jones)--Saudi Basic Industries Corp., or Sabic, Thursday said it had signed a $400 million agreement with U.S.-based chemical firm Celanese Corp. to build a 50,000 ton polyacetal production facility in Jubail Industrial City in Saudi Arabia.

Construction of the plant will begin next year and it will come on stream by 2013, using methanol feedstock from Sabic affiliate Ibn Sina, the company said in an emailed statement.

Sabic owns a 50% stake in Ibn Sina, while Celanese and an affiliate of Duke Energy Corp. each hold 25%. Total invested capital in the project will be approximately $400 million, Sabic said.

Sabic said the new facility will boost its position in the performance chemicals industry as an important part of its 2020 strategic plan. It will also provide wider prospects for the Saudi national downstream industries to enter automotive and other advanced industries, it said.

Sabic shares closed flat at SAR99.50 Wednesday.

-By Stefania Bianchi, Dow Jones Newswires; +971 4 4461685; stefania.bianchi@dowjones.com

(END) Dow Jones Newswires

01-04-10 0736GMT