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Product category: Oil, Gas, Petrochemical Industry News
News Release from: SABIC
Edited by the Processingtalk Editorial Team on 22 June 2004

Sabic expansion has investments of USD
6.4 billion

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Sabic announces investment approval for new plants for ethylene, ethylene glycol, polyethylene and polypropylene, a flat steel products plant, and an additional methanol plant.

At a meeting of the Sabic Board of Directors in The Netherlands, the Chairman, Prince Saud Ibn Abdullah Ibn Thunayan Al-Saud, endorsed expansion investments of SR 24 billion (US$ 6.4 billion) They include:

Confirmation of plans to construct new petrochemical plants in Yanbu for 3.8 million mt/y of ethylene, ethylene glycol, polyethylene and polypropylene products to come on stream in 2007.

Expansions at the Eastern Petrochemical Company (SHARQ) adding 2.9 million mt/y of ethylene, polyethylene and ethylene glycol by 2008: SHARQ is a 50:50 joint venture between SABIC and SPDC, a Japanese consortium headed by Mitsubishi.

An additional 1 million mt/y of flat steel products at the Saudi Iron and Steel Company (HADEED) with production scheduled for 2006.

An additional 1.7 million mt/y of methanol at the Saudi Methanol Company (AR-RAZI) scheduled for production in the latter half of 2007: this will make AR-RAZI, a 50:50 joint venture with Mitsubishi, the largest single methanol-producing complex in the world.

Sabic Vice Chairman and CEO, Mohamed Al-Mady, said: "These projects demonstrate Sabic plans for investment and its continuing strategy to become a leader in the global petrochemicals industry".

The Chairman and Board also visited Sabic plants in the Netherlands and Germany and met with senior Dutch officials including the Minister for Foreign Trade and the Queen's Governor of Limburg.

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