Celanese, SABIC in deal to build $400m plastics plant


03/04/2010 00:00 AST  Saudi Gazette

Dallas-based Celanese Chemical Corp. will build a 50,000 ton polyacetal (POM) production facility in Saudi Arabia through a joint venture agreement with Saudi Basic Industries Corp.(SABIC)

The joint venture with SABIC, with a total invested capital of $400 million, is called National Methanol Co. (Ibn Sina), Celanese said Thursday.

Celanese, which is an affiliate of Duke Energy, holds a 25 percent interest in the venture, while Duke’s interest is also 25 percent. The remaining 50 percent is held by SABIC.

Polyacetal - the substance the facility will be making - is an engineering plastic that is used in mechanical parts for automobiles, such as doors and locks and for various electrical applications.

The investment supports accelerated future growth plans for Celanese’s Advanced Engineered Materials segment, specifically its Ticona Engineering Polymers business, as it delivers innovative solutions for POM customers; and SABIC, in support of its regional business development. Engineering and construction of the facility is expected to begin later this year.

Construction of the facility is part of an extension of the Ibn Sina joint venture, which will now run through 2032. Ibn Sina produces methanol, a key feedstock for POM production, as well as methyl tertiary-butyl ether (MTBE). Through Ibn Sina, Celanese strengthens its raw material and energy positions.

Celanese, SABIC and Duke Energy Corporation entered into the Ibn Sina joint venture in 1981. Celanese and an affiliate of Duke Energy each hold a 25 percent interest in the venture, with the remaining 50 percent held by SABIC. Upon successful startup of the POM facility, Celanese’s economic interest in Ibn Sina will increase from 25 percent to a total of 32.5 percent, providing further financial benefits for Celanese. SABIC’s economic interest will remain unchanged. Over the past three years, Celanese has received approximately $238 million in dividends from the venture.

Moreover, SABIC has developed an advanced technology for the manufacture of polypropylene. The fourth-generation catalyst can be used in packaging, carpets, piping and automotive parts.

The new catalyst has been applied commercially in the SABIC-affiliate Saudi European Petrochemical Company (Ibn Zahr) and demonstrated excellent performance compared to the previously used catalyst, according to the company.

Using the new catalyst, production reached nearly 30,000 tons of polypropylene (as at the end of March 2010).

Saudi Basic Industries Corp. - SABIC
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | News Archive

JAN | FEB | MAR | APR
Most Viewed Companies
Ticker Price Volume
GFH 0.21
ADIB 6.78 826,911
SECO 14.74 5,260,462
DARALARKAN 12.5 47,357,023
NBAD 15.05 1,349,794
TAWUNIYA 40.82 2,721,642
EMAAR 10.25 10,318,534
Recent News

Trade negotiators struggle ahead of US-Japan summit
Tokyo TALKS between the United States and Japan aimed at a trade deal seen as vital to a broader regional pact are in stalemate, Japan's economy minister said, as negotiators struggle to narrow gaps

Wall Street Weekahead - Spring fever brings hope for US earnings
Earnings season shifts into high gear next week, and with nearly one-third of S&P 500 names set to post results, investors hope the news provides a catalyst to buy stocks and leave the market's rece

India’s forex reserves rise to $309.44bn as of April 11
MUMBAI: India's foreign exchange reserves rose to $309.44 billion as of April 11 from $306.65 billion in the week earlier, the Reserve Bank of India said on Friday.

Changes in foreign curr

Japan's consumer inflation set to reach five-year high
Core consumer prices in Tokyo, a leading indicator of nationwide inflation, appear to have risen by the largest amount for 22 years in April after an increase in Japan's sales tax drove up prices, a

Gold Drops on U.S. Economy; Platinum Falls on Labor Talks
Gold futures fell as signs of gains in the U.S. economy eroded demand for the metal. Platinum dropped amid signs of progress in the labor dispute in South Africa, the world’s biggest producer.

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Are you satisfied with your full-service broker?