Tuesday, 12 December 2006
DAMMAM: International Methanol Company (IMC), an affiliate of Saudi International Petrochemical Company (Sipchem), has signed final agreements with Saudi British Bank, Saudi Fransi Bank and Riyad Bank on Dec. 9, to re-finance the existing commercial bank loan of SR535 million on the basis of an Islamic ljara lease structure.
According to Ahmad Al-Ohali, President of Sipchem, the deal is in line with the company's long term goal of financing its projects Islamically to the extent possible.IMC was established in 2002 as a joint venture between Sipchem and Japan Arabia Methanol Company Ltd. to produce 1 million tons per annum (mtpa) of Methanol from its world scale plant located in the sprawling complex of Sipchem in Jubail. Methanol is used in manufacturing a wide variety of chemical products, such as formaldehyde and Acetic Acid.
In addition to IMC, Sipchem has been successfully operating a world scale butanediol plant since 2005. As part of Phase-II of development, construction of acetic acid, vinyl acetate monomer, and carbon monoxide plants has already started in the second half of 2006. Further, with the recent launch of the multi-billion dollar phase-III olefins & derivatives complex, Sipchem aims to be one of the largest private, fully integrated petrochemical complexes in the Mideast.
© The Saudi Gazette 2006
