Saudi Kayan has dropped plans to build an ultra-high molecular-weight polyethylene (UHMWPE) plant in Jubail, one of Saudi Arabia's major industrial hubs, it said on Thursday.
In 2012, Kayan and Petrokemya, both affiliates of Saudi Basic Industries Corp (SABIC), signed a memorandum of understanding to equally own and finance the project, located at Kayan's petrochemicals complex.
Kayan said in a statement on the Saudi bourse that preliminary results of an economic feasibility study were not in line with the company's growth plans. It did not say if the decision was taken jointly with Petrokemya.
In its 2012 announcement, Kayan said the plant would have production capacity of 35,000 tonnes per year and start production in the second half of 2014. No financial estimates were given.
UHMWPE is used in industrial applications including batteries and industrial fibres.