The agreement was signed by Mansour Al Kharboush, SABIC Vice-President, Specialty Products, and by Robert G. Hutchinson, Vice-President Chemicals, ExxonMobil Saudi Arabia Inc.
The HOA defines the principal terms for the proposed multibillion dollar project including project scope, technology, marketing and feedstock supply. The project would establish a domestic supply of over 400 KTA of carbon black, rubber and thermoplastic specialty polymers (EPDM, TPO, Butyl, SBR/PBR) to serve emerging local and international markets. This project, which includes a vocational training institute and product application development and support center as part of the scope, is aligned with Saudi Arabia's National Industrial Cluster Development Program which is responsible for accelerating growth and diversification of the manufacturing sector, including the automotive manufacturing industry.
The final decision to implement the project, which will require Board of Director approval for both joint ventures, is subject to the completion of more detailed studies of economic feasibility and the completion of all other statutory procedures.
The new Elastomers project would utilize additional feedstock allocated by the Ministry of Petroleum & Mineral Resources of the Kingdom of Saudi Arabia, and additional feedstocks from other sources in the Kingdom that will be processed at Saudi Yanbu Petrochemical Company (Yanpet) in Yanbu and Al-Jubail Petrochemical Company (Kemya) in Jubail.
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SABIC and ExxonMobil Chemical sign Heads of Agreement for new Elastomers project in Saudi Arabia
- Saudi Arabia: Wednesday, November 19 - 2008 at 13:52
- PRESS RELEASE
Saudi Basic Industries Corporation (SABIC) and affiliates of ExxonMobil Chemical have signed a Heads of Agreement (HOA) and are progressing detailed studies for a new Elastomers project at their petrochemical joint ventures, Kemya and Yanpet.
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About SABIC:Saudi Basic Industries Corporation (SABIC) is the world's 5th largest petrochemicals company. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
SABIC's profit rose to a record SR27bn in 2007, a 33% increase over 2006. Sales revenues for 2007 totalled SR126.2bn, the highest revenues achieved by the company since its inception. Total assets stood at SR256bn at the end of 2007.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Specialty Products, Polymers, Fertilizers and Metals. In 2007 SABIC Innovative Plastics was launched as a global manufacturer and supplier of highly engineered thermoplastics. SABIC has significant research resources and has 16 dedicated Research and Technology and application centers in the Middle East, the Americas, Europe and Asia-Pacific. The company operates in more than 40 countries across the world with over 31,000 employees worldwide.
In Saudi Arabia, the company has 20 world-scale complexes and 19 of them are located in the industrial cities of Al-Jubail and Yanbu. Some of these complexes are operated with multi-national joint venture partners such as ExxonMobil, Shell and Mitsubishi Chemicals. Elsewhere, SABIC manufactures on a global scale in more than 45 countries in the Americas, Europe and Asia Pacific. SABIC's overall production has increased from 27 million metric tons in 2001 to 55 million metric tons in 2007.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
About YANPET and KEMYA:
Saudi Yanbu Petrochemical Company (Yanpet) is a 50-50 joint venture between Mobil Yanbu Petrochemical Company Inc., an affiliate of ExxonMobil Chemical, and Saudi Basic Industries Corporation (SABIC).
Al-Jubail Petrochemical Company (Kemya) is a 50-50 joint venture between Saudi Basic Industries Corporation (SABIC) and Exxon Chemical Arabia Inc., an affiliate of ExxonMobil Chemical.
ExxonMobil Chemical refers collectively to some or all of the companies affiliated with ExxonMobil Corporation which have chemical manufacturing and/or marketing operations around the world.
For further information, kindly contact:
Arpana Bhandari
Junior Account Executive
Hill & Knowlton
Te: +971 4 3344 930
Fax: +971 4 3344 923
Posted by Rana MesbahWednesday, November 19 - 2008 at 13:52 UAE local time (GMT+4)
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