Saudi Basic Industries Corporation (SABIC) will be halting the production of Ultem polymers in its mega production complex in Cartagena, Spain, this year.
The move is part of the strategy to optimise global operations, the state-owned enterprise said in a bourse filing on Tuesday.
SABIC is the world’s fourth-biggest petrochemicals company. Saudi Aramco has announced a deal to buy a 70 percent stake in SABIC from the Public Investment Fund in March last year.
SABIC assured that the rest of the operations at the Cartagena facility will continue, although it is expecting the suspension to result in a “non-cash financial impact” of approximately 700 million Saudi riyals.
It also assured that it remains committed to meet the product requirements of its existing Ultem customers through its other assets.
“The decision has no direct impact on the other remaining operations at the Cartagena facility,” SABIC said.
The Saudi conglomerate has a complex in Cartagena, home to a few plants that specialise in the production of polycarbonate and polyetherimide resins. In September 2010, the company opened the doors to its second Ultem resin plant in the Cartagena complex. The investment costs 300 million euros.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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