Industry News

SABIC and Mitsubishi Rayon sign LoI for joint venture in KSA

Published on 2009-08-11. Author : SpecialChem

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.

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 $1-billion 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.

Source: SABIC

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