By Andy Sambidge
Saudi giant signs agreement with Italy's Montefibre in bid to supply regional, international markets
Saudi Basic Industries Corporation (SABIC) has inked a deal with Italy's Montefibre to build a carbon fibre production plant in Saudi Arabia.
The Gulf region's largest listed company has signed a technology agreement, which grants it an international licence for the carbon fibre technology developed by its partner with Montefibre.
SABIC will first use the technology for the new carbon fibre plant to be built in Saudi Arabia.
The plant will enable SABIC to serve the growing demand for carbon fibre and composites in markets such as alternative energy, transportation and infrastructure, the company said in a statement.
The two companies also signed a memorandum of understanding to study the feasibility of a new carbon fibre production plant in Spain, the statement added.
Once complete, the carbon fibre project in Saudi Arabia is expected to establish a supply of more than 3,000 tonnes of industrial grade carbon fibre to serve emerging local markets in the Middle East as well as international markets.
The project will also include the creation of a new carbon fibre product development centre at the SABIC Plastics Application Development Centre (SPADC), which is under construction at the Riyadh Techno Valley research complex at King Saud University.For all the latest industry 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.