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SABIC, Sipchem sign MoU for new projects in Jubail
12
May '09
The Saudi Basic Industries Corporation (SABIC) and the Saudi International Petrochemical Company (Sipchem) announced that they have signed a Memorandum of Understanding (MoU) for mutual cooperation in the setting up of new projects in the city of Al-Jubail.

The two companies will utilize their existing infrastructure and manufacturing capacity to process Saudi Aramco feedstock allocated by Ministry of Petroleum and Mineral Resources for the new projects.

The projects include seven plants with an estimated l investment of US$ 3.2 billion (SR 12 billion) plants, which SABIC will construct to produce 250,000 tons of methyl metha acrylate (MMA), 30,000 tons of poly methyl metha acrylate (PMMA), 200,000 tons of acrylonitrile, 50,000 tons of polyacrylonitrile, 50,000 tons of polyacetyl resins, 3,000 tons of carbon fiber and 40,000 tons of sodium cyanide annually.

While, Sipchem will build two plants for an estimated cost of US$ 810 million (SR 3 billion) for the production of 125,000 tons of poly vinyl acetate and 200,000 tons of ethylene vinyl acetate annually. These plants are expected to go on-stream by mid 2013.

According to the MoU, a SABIC manufacturing affiliate will crack the feedstock allocated to Sipchem and also provide it with ethylene. One of Sipchem's manufacturing companies will supply carbon monoxide to SABIC for the production of MMA.

The two companies will move forward on these projects after the completion of economic studies and legal procedures. Studies on the appropriate technology required for these projects are currently under way.

As these industries are largely research-dependant, SABIC and Sipchem will establish specialized R&D centers to develop product applications. Their aim will be to promote and encourage local downstream industries, especially in the areas of automotive parts, electrical appliances, household commodities, computers and electronic equipment and health care and provide support to national downstream industries, especially the plastic industries sector.

The MoU was signed by Mutlaq H. Al-Morished, SABIC Vice President, Corporate Finance, and Ahmad Al-Ohali, Sipchem CEO.

Saudi International Petrochemical Company

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