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Wed 27 Apr 2011 01:06 PM

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Sabic in chemicals venture with Japan's Asahi, Mitsubishi

Saudi Japanese Acrylonitrile Co (Shrouq) will build a plant to produce acrylonitrile and sodium cyanide in Jubail

Sabic in chemicals venture with Japan's Asahi, Mitsubishi
(Image: Company website)

Saudi Basic Industries Corp, the world's largest chemicals producer by market

value, said it will launch a joint venture firm with Japan's

Asahi Kasei Chemicals and Mitsubishi Corp.

The new company, Saudi Japanese Acrylonitrile Co (Shrouq),

will build a plant to produce acrylonitrile and sodium cyanide

at one of the SABIC affiliates' sites in Jubail.

The facility will have capacity of 200,000 tonnes annually

of the former and 40,000 metric tons annually of the latter,

SABIC said in a statement on Wednesday.

Jubail is home to a petrochemicals hub on the east coast of

the world's largest oil exporter Saudi Arabia.

SABIC did not identify the affiliate. It has announced plans

to build an acrylonitrile butadiene styrene (ABS) plant at its

fully-owned affiliate Petrokemya.

The petrochemicals giant benefits from access to cheap

energy feedstock, giving it a competitive advantage over global

rivals.

The new company, with a paid-up capital of 40 million Saudi

riyals will help SABIC diversify its petrochemical portfolio to

acrylonitrile butadiene styrene (ABS), carbon fiber, acrylic

fiber, acrylamide which serve various industries such as

automotive, construction, water treatment, oil recovery, gold

mining and others, the statement quoted Mohammed al-Mady,

SABIC's Chief Executive as saying.

The three companies will start conducting basic engineering

design and will take a final investment decision in 2012.

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