Kuwait’s United Industries Co (UIC), a unit of major holdings firm Kuwait Projects Co, plans to build a $300 million chemical plant in Kuwait, an executive close to the deal said on Tuesday.
UIC plans to develop the 400,000 tonne-a-year plant in joint venture with Industrial Bank of Kuwait (IBK).
“We expect to go to the design stage within three months and complete construction by 2010,” an executive at IBK told Reuters on the sidelines of a petrochemicals conference in Dubai.
The plant, located at the Shuaiba Industrial area, will produce purified terephthalic acid (PTA), a raw material used for the manufacture of polyster.
“We are trying to squeeze the raw materials as the internal rate of return is declining,” said the executive.
The PTA will be exported primarily to the Asian markets.
IBK will sell part of its stake in the project at a later stage. Shares in the project company may also be sold to the public within three years, the executive said.
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