Saudi Basic Industries Corporation (SABIC) affiliate, Yanbu National Petrochemical Company (YANSAB), announced today its first shipment of ethylene glycol (EG) from its EG plant in Yanbu Industrial City. The first EG increment amounted to 5,000 metric tons and was sold to European customers.
Hamad Mutlaq Al-Morished, YANSAB Chairman and SABIC Vice-President, Corporate Finance, stated that total annual capacity for EG production at YANSAB amounted to 770,000 metric tons, and that total added EG capacity at the Yanbu facility brings SABIC's global EG capacity to 3.7 million metric tons.
The YANSAB complex comprises eight world-class plants with a total annual capacity of more than 4 million metric tons of petrochemical products, including: 1.3 million tons of LDPE, 400,000 tons of propylene, 800,000 tons of polyethylene (both low- and high-density), 400,000 tons of polypropylene, and including the 770,000 tons of EG capacity mentioned above, along with 250,000 tons of benzene and a mix of Xylene and toluene, and including also 100,000 tons of butane-1 and butane-2, and 25,000 tons of MTBE.
YANSAB applies the latest state-of-the-art global technologies for the operation of its petrochemical complex, some of which will be introduced for the first time in the Kingdom. The complex produces olefins, aromatics, oxygenates and various polymer products that are used in plastic industries around the world, including the carpet industry, textiles, packaging, toys, household goods and appliances, automotives and engineering industries. Other products are used for antifreeze in car and machinery cooling systems as well as polyester fiber for manufacturing (PET) and water and gas high-pressure pipes, transparent packaging such as bags and film and industry-based rubber tapes for woven and non-woven fabrics, water pipes, and materials for injection moulding of household goods and blankets.
YANSAB president, Abdul Rahman Al-Fagih explained that when YANSAB first went live with start up of production at the Yanbu complex in July of this year, the company was able to reach the designed production capacity in record time while maintaining highest safety performance. The project completed more than 40 million man/hours without a lost time injury, to become one of the best projects of its kind worldwide.
Total YANSAB capital amounts to SR 5.6 billion, with SABIC owning 51 percent of the company and SABIC Industrial Investments company owning an additional 4 percent. Additionally, a group of 17 Saudi and Gulf-based companies own 10 percent of the capital. The remaining 35 percent was offered in an Initial Public Offering (IPO) for public subscription by Saudi nationals, and the IPO allocation was completed on January 5, 2006.
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About SABIC
SABIC ranks among the world's top five producers of commodity chemicals and plastics, and is a major global developer and supplier of thermoplastics engineered to meet customer needs. Additionally, SABIC has operations in steel production and fertilizers, and increasing brand presence in high-value performance chemicals.
SABIC recorded a net profit of SR 22 billion (US $5.86 billion) in 2008. Sales revenues for 2008 totalled SR 151 billion (US $40.2 billion). Total assets stood at SR 272 billion (US $72.5 billion) at the end of 2008.
SABIC has significant research resources with 15 dedicated Research and Technology and application centers in the Middle East, the Americas, Europe and Asia-Pacific. The company operates in more than 40 countries with 33,000 employees worldwide.
The company has some 60 world-class manufacturing and compounding plants in locations across the Middle East, Asia, Europe and the Americas.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
Othman Al-Humaidi
General Manager Corproate Communications
© Press Release 2009
