The LoI was signed on behalf of Sabic by Mutlaq Al-Morished, Vice President of Corporate Finance and Chief Financial Officer, and on behalf of MRC by Masanao Kambara, President and Representative Director.
The LoI outlines the principal terms of the proposed $1bn joint venture including the joint-venture structure, technology, marketing and feedstock supply, with start-up targeted for 2013.
Under the LoI, the joint venture will utilize the ethylene-based Alpha process commercialized by Lucite (a wholly owned subsidiary of MRC) to manufacture methyl methacrylate monomer (MMA), with a design capacity of 250,000 metric tons annually. Also, the joint venture company will manufacture polymethyl methacrylate (PMMA), with a design capacity of 30,000 metric tons annually.
Sabic will be responsible for the supply of key raw materials such as ethylene and methanol for the joint venture. Sabic and MRC will also explore the possibilities to produce other products identified under the LoI.
MMA and acrylic resin are widely used to produce automobile parts, car exteriors, optical screens, and home appliances, among others. PMMA is widely used in the construction and transport sectors, as well as for liquid crystal display (LCD), light-guided panels (LGP) for LCD screens, and for light emitted diode (LED) technology for flat screens, among other uses.
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Sabic and Mitsubishi Rayon sign LoI for joint venture in KSA
- Saudi Arabia: Monday, August 10 - 2009 at 15:52
- PRESS RELEASE
Saudi Basic Industries Corporation (Sabic) and Mitsubishi Rayon Company Ltd (MRC) signed a Letter of Intent (LoI) on August 10, 2009, to establish a 50/50 joint venture in the Kingdom of Saudi Arabia.
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About Sabic:Sabic ranks among the world's top five chemical companies, and is among the world's market leaders in the production of polyethylene, polypropylene and advanced engineering thermoplastics, glycols, methanol and fertilizers.
Sabic recorded a net profit of SR22bn ($5.86bn) in 2008. Sales revenues for 2008 totaled SR151bn ($40.2bn). Total assets stood at SR272bn ($72.5bn) at year's end in 2008.
Sabic's businesses are grouped into Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics. Sabic has significant research resources, including 15 dedicated research and application centers in the Middle East, the Americas, Europe and Asia-Pacific.
The company has 19 world-scale complexes in Saudi Arabia and also manufactures on a global scale with some 60 plants in 40 countries and 33,000 employees worldwide. Sabic's overall production has increased from 35 million metric tons in 2001 to 56 million metric tons in 2008.
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.
About Mitsubishi Rayon Company:
Mitsubishi Rayon Co., Ltd. was established in 1933 as Japan's first manufacturer of rayon staple fibers. In the 1940s we launched a methyl methacrylate (MMA) business, which today is our core operation. In the years since, we have expanded our business into the field of synthetic resin, synthetic fibers, carbon fibers, hollow-fiber membranes, and optical fibers, based on our proprietary polymer technologies.
In May 2009 MRC acquired Lucite International Group Ltd., a major manufacturer of MMA. This has made MRC the world's largest MMA manufacturer, with production capacity of 1,356,000 tons and a global share of 37% in terms of production capacity. We are also now the world's only manufacturer utilizing the three major MMA manufacturing processes, namely the new ethylene process, the C4 process, and the ACH process.
Mitsubishi Rayon Co., Ltd. has more than 30 manufacturing facilities and eight research institutes in Japan, other Asian countries, Europe, and North America, and employs about 9,500 workers.
In fiscal 2008 the Company registered sales of JPY345bn ($3.6m) on a consolidated basis.
For more information, please contact:
Yasmin Adem
Account Executive
Hill & Knowlton
Tel: +966 1 288 6734/35
Fax: +966 1 288 6736
Posted by Rana MesbahMonday, August 10 - 2009 at 15:52 UAE local time (GMT+4)
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