Samsung to construct Petrokemya’s new Butene plant
Arabian Petrochemical Company (Petrokemya), a wholly owned affiliate of Saudi Basic Industries Corporation (SABIC) has awarded a lump-sum turnkey contract to the Korean company, Samsung Engineering Co. for the engineering, procurement and construction of a third Butene-1 plant.
The facility will be constructed at Al-Jubail Industrial City on the eastern coast of Saudi Arabia, and is scheduled for completion by the first quarter of 2005. Plant capacity will be 130,000 mt per year of butene-1. The two existing butene-1 plants at Petrokemya already produce 100,000 mt/y. After the expansion, the affiliate will have a total butene-1 capacity of 230,000 mt/y.
Vice Chairman and CEO of SABIC, Mohamed Al-Mady said: “This expansion reaffirms SABIC’s commitment to grow its core business, and moves us closer to achieving our vision of to become one of the world’s leading global petrochemical companies. With this additional plant, we are moving closer to our production target of 48 million mt/y by 2010.”
Petrokemya and SABIC Engineering & Project Management jointly undertook the work leading to the contract, which was awarded through an international competitive bidding process. Other products produced by Petrokemya include ethylene; polystyrene; propylene; butadiene; and benzene.
The Middle East’s largest petrochemicals company, SABIC, is based in Riyadh, Saudi Arabia. It was founded in 1976, when the Saudi Arabian Government decided to use hydrocarbon gases released in the production of oil as raw material for the 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 countries of the Gulf Cooperation Council (GCC).
SABIC’s business activities have been restructured and a new management model became effective on September 1, 2002. There are now six Strategic Business Units (SBUs): Basic Chemicals; Intermediates; Polyolefins; PVC & Polyester; Fertilizers and Metals. Supporting all these functions is a corporate core consisting Human Resources; Corporate Finance; Corporate Control and Research & Technology. A Shared Services Organization will become operational in 2003.
SABIC has two large industrial sites in Saudi Arabia – Al-Jubail and Yanbu – with sixteen world-scale production complexes. Some of these production complexes are operated with multi-national partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. In addition, SABIC has interests in three production complexes in Bahrain. Over the last 16 years, SABIC’s overall production capacity has increased considerably. In 2002 it amounted to 40.6 million metric tons.
SABIC EuroPetrochemicals owns two petrochemical production sites in Geleen (Netherlands) and Gelsenkirchen (Germany) for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons. They annually sell about 2.6 million tonnes of polymers, mainly in Europe. About 2,300 people are employed at SABIC EuroPetrochemicals.
SABIC employs over 16,000 people worldwide, most of whom are based in Saudi Arabia. In 2002 SABIC posted sales of approximately 34 billion Saudi riyals ($9.06 billion) and a net profit of approximately SR2.84 billion ($758.4 million). — (menareport.com)
© 2003 Mena Report (www.menareport.com)
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