The LOI was signed in the presence of Mohamed Al-Mady, SABIC Vice Chairman & CEO, by Abdulrahman Al-Fageeh, President YANSAB, for SABIC, and Mr. David Seaton, Fluor Sr. Vice President, Chemical Products Business Line, Energy and Chemicals Group, for the Fluor Company.
Mohamed Al-Mady said, "The utilities and site facilities are the largest units of the YANSAB complex and are vital for feeding the various complex plants with water, power supplies, steam and chilled water.
"I expect that these works will be completed within 34 months. Completion of the complex mechanical works is expected during 1Q2008. Initial annual production capacity will go beyond 4 million MTY of petrochemical products which will strengthen SABIC's contribution to national development plans and boost its competitive capabilities in the global markets.
"YANSAB will apply the latest state-of-the-art and cutting-edge technologies in its production operations including Scientific Design Ethylene Glycol technology, 50% owned by SABIC and 50% by German Sud Chemi. It will also use Butene-1 technology developed by SABIC in cooperation with the French Petrol Institute. In addition, the complex will apply for first time a new technology for the manufacture of HDPE and other technologies for conversion of pure aromatic compounds into Benzene.
"Once operational, this mega project will employ 1,500 employees, benefiting Saudi citizens."
YANSAB will be one of the world's largest plants. It will produce 1.3 million MTY of Ethylene; 400,000 MTY of Propylene; 900,000 MTY of High Density Polyethylene (HDPE) and Low Density Polyethylene (LLDPE); 400,000 MTY of Polypropylene (PP); 700,000 MTY of Mono Ethylene Glycol (MEG); 250,000 MTY of Benzene, xylene and toluene compound. The complex will manufacture a wide range of basic chemical, intermediate and polymer products.
SABIC has recently selected the ABN AMRO Group with Saudi Hollandi Bank as the financial advisor for the YANSAB loan.
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SABIC signs Letter of Intent (LOI) with the US Fluor Company
- Saudi Arabia: Monday, May 30 - 2005 at 13:41
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Saudi Basic Industries Corporation (SABIC) today signed a letter of intent with the US Fluor Company to construct utilities and site facilities at the SABIC affiliate, Yanbu National Petrochemicals Company (YANSAB) in Yanbu.
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Posted by Anne-Birte Stensgaard, Senior News EditorMonday, May 30 - 2005 at 13:41 UAE local time (GMT+4)
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This article was updated on Sun Jun 24 2007.
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HE Mohamed Al-Mady
SABIC Vice Chairman and Chief Executive Officer
Saudi Basic Industries Corporation (SABIC) is the largest company in the Middle East by market capitalization (at more than US$ 100 billion), and the 11th largest petrochemicals manufacturer in the world. It is a market leader in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers and the fourth largest polymers producer in the world.
SABIC's profit rose to a record SR 14.2 billion (US$ 3.8 billion) in 2004, a 112% increase on 2003 and the company's highest profit since inception. Sales revenues for 2004 totaled SR 68.5 billion (US$ 18.3 billion), an increase of 47% on revenues in 2003 making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 16,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia - in Al-Jubail and in Yanbu - comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 42.9 million metric tons of production in 2004.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases released in oil production as the raw material for the 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.
SABIC Europe has its headquarters in Sittard in the Netherlands. It operates two petrochemical production sites in Geleen, Netherlands and Gelsenkirchen in Germany for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons. In 2004 SABIC Europe sold 6 million tons of polymers, base chemicals and intermediates, mainly to the European market, employing 2,300 people.
SABIC Vice Chairman and Chief Executive Officer
Saudi Basic Industries Corporation (SABIC) is the largest company in the Middle East by market capitalization (at more than US$ 100 billion), and the 11th largest petrochemicals manufacturer in the world. It is a market leader in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers and the fourth largest polymers producer in the world.
SABIC's profit rose to a record SR 14.2 billion (US$ 3.8 billion) in 2004, a 112% increase on 2003 and the company's highest profit since inception. Sales revenues for 2004 totaled SR 68.5 billion (US$ 18.3 billion), an increase of 47% on revenues in 2003 making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 16,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia - in Al-Jubail and in Yanbu - comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 42.9 million metric tons of production in 2004.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases released in oil production as the raw material for the 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.
SABIC Europe has its headquarters in Sittard in the Netherlands. It operates two petrochemical production sites in Geleen, Netherlands and Gelsenkirchen in Germany for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons. In 2004 SABIC Europe sold 6 million tons of polymers, base chemicals and intermediates, mainly to the European market, employing 2,300 people.
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