Saturday, May 05, 2012
RIYADH (Zawya Dow Jones)--Saudi Arabia's Advanced Petrochemicals Co. (2330.SA) said Saturday it has signed a memorandum of understanding with Turkey's Bayegan Group for the development of a joint $1 billion propane dehydrogenation and polypropylene plant in southern Turkey.
The Saudi company will hold a 70% equity stake in the new project and Bayegan Group will have 30%, Advanced Petrochemicals said in a statement posted on the Saudi bourse website.
The project will be funded 70% through third party financing and 30% via an equity contribution from the two partners, it said.
Construction of the project is expected to start in the second quarter of 2013 and end in the fourth quarter of 2015. Once fully operational, the plant is expected to produce about 500,000 tons of polypropylene per year.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2012 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
05-05-12 0955GMT
