Eastern Petrochemical Company (SHARQ) has entered into loan agreements with Japan Bank for International Cooperation (JBIC), Public Investment Fund (PIF) and Local and International Banks, amounting to SR 9.11 billion (US$ 2.43 billion), for the construction of its Third Expansion Project in Al-Jubail Industrial City.
The loan agreements were signed by and between; Dr. Abdulaziz S. Al-Jarbou, Chairman of the Board of Directors of SHARQ, and Mr. Nobuyuki Higashi, Chief Representative of the Representative Office in Dubai for JBIC, Mr. Mansour Al-Maiman, Secretary-General, representing PIF and Mr. Akira Naito, Managing Executive Officer of The Bank of Tokyo-Mitsubishi UFJ Ltd. representative of the Local and International Commercial Banks.
The production of the new plants is expected to go on stream during the second half of 2008, with an annual capacity of 1,300 KTPA of Ethylene, 700 KTPA of Ethylene Glycol, 400 KTPA of High Density Polyethylene (HDPE) and 400 KTPA of Linear Low Density Polyethylene (LLDPE). With the addition of new capacity, SHARQ's overall annual capacity is expected to exceed 4,900 KTPA, more than ten times its initial annual capacity - which was 430 KTPA. SHARQ will become the world's largest producer of Ethylene Glycol at one site.
SHARQ was founded on 23 May 1981 as a joint venture, equally owned by Saudi Basic Industries Corporation (SABIC) and SPDC LTD (a consortium of Japanese companies led by Mitsubishi Group and supported by Japanese Government).
-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 2.5 million metric tons of polyolefins and 3.1 million metric tons of basic chemicals, mainly for the European market.
Mohammed Ibn Ahmed Al Kusayer
Acting General Manager,
Corporate Communications
© Press Release 2006
