Home / Knowledge / News / Textiles / Joint venture to implement acrylonitrile (ACN) project
Joint venture to implement acrylonitrile (ACN) project
28
Apr '11
Saudi Basic Industries Corporation (SABIC), Asahi Kasei Chemicals Corporation and Mitsubishi Corporation signed a strategic Joint Venture (JV) Agreement to form a limited liability company, Saudi Japanese Acrylonitrile Company (SHROUQ), in Saudi Arabia. The company will build a plant for the manufacturing of Acrylonitrile (ACN) and Sodium Cyanide (NaCN), with subsequent sales and distribution to be carried out by the partners.

The agreed plan is to establish world-scale plants with capacities of 200,000 metric tons annually of Acrylonitrile (ACN or AN) and 40,000 metric tons annually of NaCN at one of the SABIC affiliates' sites in Jubail Industrial City, Saudi Arabia.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, said: "A key driver for the project is Saudi Arabia's National Industrial Clusters Development Program aimed at growing and diversifying the Kingdom's manufacturing sector. He also noted that “AN and NaCN are very important chemicals for downstream diversification into Acrylonitrile Butadiene Styrene (ABS), Carbon Fiber, Acrylic Fiber, Acrylamide and others which serve various industries such as automotive, construction, water treatment, oil recovery, personal care, consumer goods, pharmaceuticals, electronics, gold mining and many others. “In particular NaCN will support the local mining industry in Saudi Arabia,” he said.

The Asahi Kasei Group has identified AN operations as a focus for global expansion through strategic investment of management resources with the aim of gaining the number one position in the global AN market. Asahi also states in its official statement that solid demand growth for AN is forecasted to continue worldwide and that Asahi Kasei Chemicals had been considering the construction of a new AN plant to meet rising demand in the Middle East and North Africa. The Asahi Kasei Group commented that the new capacity, joined with their other production in Japan and Korea, will make them the largest producer of AN in the world at some 1.4 million tons per year upon completion of the new plant in Saudi Arabia.

The three partners moved forward with studies and negotiations based on the desire to address the growing demands in the region and globally with the establishment of a joint AN project in Saudi Arabia with superior cost-competitiveness. Under today's agreement, the three partners will now begin formulating the basic engineering design and perform advance work on a detailed business plan. Leading world-class AN and NaCN technology, a global network and established infrastructure and feedstock resources are the strengths that SABIC and the partners bring to the JV.

The partners are targeting the development of a globally competitive project with best-in-class industrial performance. The project will also focus on carrying out all necessary details for the JV incorporation and project evaluation, implementation and execution activities with final decision on capital expenditure during 2012.

Saudi Basic Industries Corporation (SABIC)

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search