SABIC signs elastomers HOA with Exxonmobil

Saudi Basic Industries Corporation (SABIC) and affiliates of Exxonmobil Chemical have signed a Heads of Agreement (HOA) for an elastomers project at petrochemical joint ventures, Kemya and Yanpet.

The agreement was signed by Mansour Al-Kharboush, SABIC vice-president, speciality products, and by Robert G Hutchinson, vice-president of chemicals, Exxonmobil Saudi Arabia.

The HOA defines the principal terms for the proposed multi-billion dollar project, including project scope, technology, marketing and feedstock supply.

The project would establish a domestic supply of over 400KTA of carbon black, rubber and thermoplastic speciality polymers (EPDM, TPO, butyl, SBR/PBR) to serve emerging local and international markets.

This project, which includes a vocational training institute and product application development and support centre as part of the scope, is aligned with Saudi Arabia's National Industrial Cluster Development Programme, which is responsible for accelerating growth and diversification of the manufacturing sector, including the automotive manufacturing industry.

The final decision to implement the project, which will require the Board of Directors' approval for both joint ventures, is subject to the completion of more detailed studies of economic feasibility and the completion of all other statutory procedures.

The elastomers project would use additional feedstock allocated by the Ministry of Petroleum and Mineral Resources of the Kingdom of Saudi Arabia, and from other sources in the Kingdom that will be processed at Saudi Yanbu Petrochemical Company (Yanpet) in Yanbu, and Al-Jubail Petrochemical Company (Kemya) in Jubail.

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