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SABIC & Shell Progress on Expansion Plans of SADAF; to Strengthen PUR Sector in Saudi Arabia

Published on 2012-11-16. Author : SpecialChem

Saudi Basic Industries Corporation (SABIC) and Shell announced that they are progressing plans for the expansion of various projects at the Saudi Petrochemical Company (SADAF). The joint venture partners are also looking to expand their partnership beyond Saudi Arabia.

Both parties are developing a full range of polyols (a polyurethane building block) and styrene monomer propylene oxide (SMPO) plants at the existing SADAF site, which is located in one of the world's largest and most competitive petrochemical complexes - the Al Jubail industrial zone on Saudi Arabia's eastern coast. SABIC and Shell will jointly conduct the necessary studies to implement the project.

The proposed full range of polyols and SMPO plants would be the first of their kind in the Middle East. The assets would employ Shell's proprietary polyols and SMPO technologies to produce chemical building blocks for the polyurethanes industry and petrochemicals sector in the Middle East and beyond. The partners are committed to the polyurethanes, styrene, propylene oxide and derivatives sectors, and have access to leading technologies as major international suppliers.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, commented, "We are pleased to be deepening our partnership with Shell. This investment will respond to demands for solutions from our global customer base. These sectors include building & construction, automotive & transportation, furniture & bedding, sports goods, food packaging, cold chain & refrigeration, and home appliances industries. Our polyurethane solutions will offer strength and flexibility, variable rigidity and insulation properties in a wide range of applications."

Developing the polyurethane sector in Saudi Arabia will contribute to necessary energy savings and create job opportunities for the growing skilled workforce.

Ben van Beurden, Executive Vice President for Shell Chemicals, said, "SABIC ranks among the world's top petrochemical companies and operates in over 40 countries. We are delighted to expand our successful, long-standing partnership of more than 30 years. The proposed SMPO and polyols plants will help strengthen Shell's global propylene oxide and polyols manufacturing capacity, boosting our supply to customers worldwide."

About SABIC

Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

SABIC recorded a net profit of SR 29.24 billion (US$ 7.80 billion) in 2011. Sales revenues for 2011 totaled SR 189.90 billion (US$ 50.64 billion). Total assets stood at SR 332.78 billion (US$ 88.74 billion) at the end of 2011.

SABIC's businesses are grouped into Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics. SABIC has significant research resources with 17 dedicated Technology & Innovation facilities in Saudi Arabia, the USA, the Netherlands, Spain, Japan, India and South Korea. The company operates in more than 40 countries across the world with around 40,000 employees worldwide.

SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific. 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 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.

About Shell

Shell is a global group of energy and petrochemicals companies. With around 90,000 employees in more than 80 countries and territories, Shell helps to meet the world's growing demand for energy in economically, environmentally and socially responsible ways.

Source: SABIC


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