Saudi Japanese Acrylonitrile Co (Shrouq) will build a plant to produce acrylonitrile and sodium cyanide in Jubail
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
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.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.