Sabic and Sipchem sign MoU for Riyadh projects

Sabic and Sipchem will use each other's surplus production capacities to produce specialty petrochemical products, as a result of signing a memorandum of understanding with each other.

Sabic (Saudi Basic Industries) and Sipchem (Saudi International Petrochemical) will use raw materials allocated by the Ministry of Petroleum and Mineral Resources for the projects.

Under the MoU, Sabic will implement several new petrochemical projects in the Kingdom of Saudi Arabia at a preliminary estimated value of SR12bn (GBP2.1bn), including seven plants for producing - each year - 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 fibre and 40,000 tons of sodium cyanide.

Sipchem will build two plants at an estimated cost of SR3bn to make 125,000 tons of poly vinyl acetate and 200,000 tons of ethylene vinyl acetate a year.

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.

Sabic and Sipchem will build specialised research and development centres to develop product applications.

Their aim will be to promote and encourage local industries, especially in the areas of automotive parts, electrical appliances, household commodities, computers and electronic equipment and healthcare.

They will provide support to national downstream industries, especially the plastic industries sector.

Back to top