06/26/2013

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SAUDI ARABIA: Sipchem signs contract to build PBT resin plant in Jubail

The plant will produce PBT resin with an annual production capacity of 63,000 metric tons and will be located in Jubail Industrial City.

The estimated project cost is approximately SR600 million and the plant is expected to start full operations at the end of 2014. PBT resin is a highly specialized thermoplastic polymer used in manufacturing compounds in automotive, electrical, electronics and IT material industries.

Ahmad A. Al-Ohali, Sipchem CEO and Chairman of Sipchem Chemicals Company, said the award of the contract is an important step in achieving Sipchem's robust expansion and downstream development program.

He further said the new PBT project will position the company as a global player in the polymers and engineering plastics industry. The use of butanediol produced by Sipchem affiliate International Diol Company as primary feedstock for the PBT resin plant allows Sipchem to take advantage of its integrated products portfolio and strengthen the value chain.

The company previously announced the signing of a loan agreement with Saudi Industrial Development Fund (SIDF) to finance the PBT project.

Source: Daily "Saudi Gazette", Riyadh; 22 June 2013

(Syed Rashid Ali, Karachi, Pakistan)

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