SABIC affiliate Yanbu National Petrochemical Company (YANSAB), signed Wednesday April 19, 2006, a Letter of Intent (LOI) with Shaw Stone & Webster Inc. for the design, supply and construction of a Butene Plant with a designed annual capacity of 135K metric tons of Butene and 250K (mtpa) of benzene, toluene and xylene mixtures at YANSAB complex, in Yanbu, Saudi Arabia.
Eng. Abdulrahman Al-Fageeh, President YANSAB, signed the LOI for YANSAB. Mr. Ebrahim Fatemizadeh, President - Energy & Chemical signed the LOI on behalf of Shaw Stone & Webster Inc.
Mohamed Al-Mady, SABIC Vice Chairman & CEO said, "This LOI completes the contractual process for all of YANSAB's plants which are expected to go on-stream by 2008, with an annual capacity exceeding 4 million (mtpa). This includes 1.3 million (mtpa) of Ethylene; 400,000 (mtpa) of Propylene; 900,000 of polyethylene, 770,000 (mtpa) of Ethylene Glycol; 500,000 (mtpa) and 400,000 (mtpa) of Polypropylene alongside Butane, Benzene, Xylene and Toluene mixtures.
"This large annual capacity will further enhance SABIC's position among the world's largest petrochemical companies and strengthen its competitive and leading capabilities in the global markets."
He further pointed out that the complex will utilize SABIC and Sud Chemie 50:50 owned Scientific Design Ethylene Glycol (EG) technology as well as Butene-1 cutting-edge technology developed by SABIC in cooperation with the French Petrol Institute. This is in addition to totally new hi-tech facilities for the production of High Density Polyethylene (HDPE), comprising the latest state-of-the-art manufacturing process to meet customer tailored requirements. This technology is being introduced for the first time in SABIC plants in parallel with a new technology for the extraction and conversion of pure aromatic compound to benzene.
SABIC owns 55% of YANSAB shares. SABIC partners in its IBN RUSHD affiliate own a further 10% with the remaining 35% being owned by Saudi citizens.
-Ends-
NOTES TO EDITORS:
Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 150 billion), and one of the world's 10 largest petrochemicals manufacturers. The company is among the world's market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
SABIC's profit rose to a record SR 19.2 billion (US$ 5.1 billion) in 2005, a 35% increase on 2004 and the company's highest profit since inception. Sales revenues for 2005 totaled SR 78.3 billion (US$ 20.8 billion), making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 17,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia - in Al-Jubail and in Yanbu - comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 46.7 million metric tons of production in 2005.
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% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC Europe, headquartered in Sittard, the Netherlands, employs nearly 2,450 people and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs. In 2005, SABIC Europe produced 2.3 million metric tons of polyolefins and 3.1 million metric tons of basic chemicals, mainly for the European market.
Othman Al-Humaidi
General Manager,
Corporate Communications
© Press Release 2006
