Sabic and Sipchem Sign Agreement for New Projects in Jubail
May 13, 2009
Sabic and the Saudi International Petrochemical (Sipchem) have signed a memorandum of understanding to invest 12bn Saudi Riyal ($3.2bn) to set up speciality chemical projects in Jubail, Saudi Arabia.
The two companies say the projects will encourage local plastics companies serving the automotive, electric appliance, houseware, computer and electronic equipment and health care sectors, according to a news release from Riyadh-based Sabic.
Under the agreement, Sabic will implement several new petrochemical projects including seven plants for the production of 5.5 billion pounds of methyl metha acrylate, 66 million pounds of polymethyl methacrylate, 440 million pounds of acrylonitrile, 110 million pounds of polyacrylonitrile, 110 million pounds of polyacetyl resins, 6.6 million pounds of carbon fibre and 8.8 million pounds of sodium cyanide annually.
Sipchem will build two plants at a preliminary estimated cost of SR 3bn billion ($810m) for the production of 275 million pounds of polyvinyl acetate and 440 million pounds of ethylene vinyl acetate annually.
These plants are scheduled go on-stream by mid 2013.
According to the agreement, a Sabic affiliate would crack the feedstock allocated to Sipchem and also provide it with ethylene. One of Sipchem’s manufacturing companies would supply carbon monoxide to Sabic for the production of MMA.
The two companies were currently studying technology required for the projects and will follow up with studies on economic viability and legal procedures.
