Saudi SABIC signs 50/50 JV with Mitsubishi Rayon
Joint venture estimated to cost $1 billion; Partnership to build, operate two plants in Jubail
May 31, 2011 2:32
Saudi Basic Industries Corp (SABIC), the world’s biggest petrochemical firm by market value, signed a 50/50 joint venture with Japan’s Mitsubishi Rayon to build and operate two plants in Jubail.
“One of the plants will produce methyl methacrylate monomer and will be the biggest plant in the world at a capacity of 250,000 metric tonnes a year,” SABIC said in a statement on Tuesday.
The other plant will produce polymethyl methacarylate with a capacity of 40,000 metric tonnes a year.
The firm said the next phase will focus on the basic engineering design, completion of supply agreements and regulatory approvals, the statement said.
The project was estimated in 2009 to cost $1 billion and is expected to be started in 2013, according to SABIC’s website.
SABIC’s Chief Executive Officer Mohamed al-Mady, said in April that the firm is looking to expand into the performance chemicals segment in 2011. He said some plants would be built in Saudi Arabia and others outside.
Mitsubishi Rayon Group is the world’s largest methyl methacrylate (MMA) producer and is a wholly owned subsidiary of Mitsubishi Chemical Holdings Corp.
Shares in SABIC closed at 107 riyals on Monday. (Reporting by Asma Alsharif; Editing by Dinesh Nair)