Exxonmobil, SABIC agree synthetic rubber JV

SYTHETIC PARTNER: Recent photo of Michael Dolan, president of Exxonmobil Chemical. (Getty Images)

Saudi Basic Industries Corp (SABIC) and Exxonmobil Chemical agreed on Tuesday to set up a multi-billion dollar synthetic rubber joint venture in Saudi Arabia, state news agency SPA reported.

The plant will have a production capacity of 400,000 tonnes and will be located in industrial complexes owned by Yanbu National Petrochemical Co (Yansab), which is 51-percent owned by SABIC, and Kemya, jointly owned by SABIC and Exxonmobil, SPA added.

It did not say when the plant is expected to start production.

SABIC and Exxonmobil Chemical signed on Tuesday a preliminary agreement to set up the joint venture which would cost "billions of dollars" according to SABIC's vice-President Mansour Al-Kharboush, quoted by SPA.

"The execution of the project depends on the completion of detailed studies that confirm its economic usefulness and the approval by the boards of each of the two companies," SPA said quoting a statement from SABIC.

SABIC's executives could not immediately be reached for comment. (Reuters)

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