SABIC SIGNS A LETTER OF INTENT (LOI) WITH STONE & WEBSTER FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF HIGH DENSITY POLYETHYLENE (HDPE) PLANT
Saudi Basic Industries Corporation (SABIC) signed on February 8, 2006, a Letter of Intent (LOI) with the US Shaw Stone & Webster for the engineering, procurement and construction of a High Density Polyethylene (HDPE) plant at the YANSAB affiliate, Yanbu, Saudi Arabia.
Eng. Abdulrahman Al-Fageeh, President YANSAB, signed the LOI for YANSAB. Mr. Ebrahim Fatemizadeh, President – Energy & Chemicals signed the LOI on behalf of the Shaw Stone & Webster in the presence of Mr. Mohamed Al-Mady, SABIC Vice Chairman & CEO.
Mr. Al-Mady said, “I expect that YANSAB will go on-stream by 2008 with an annual capacity of 1.3 million metric tons per annum (mtpa) of Ethylene; 400,000 mtpa of Propylene; 770,000 mtpa of Ethylene Glycol; 500,000 mtpa of Linear Low Density Polyethylene (LLDPE); 400,000 mtpa of High Density Polyethylene (HDPE); 400,000 mtpa of Polypropylene; 100,000 mtpa of butene-1 and butane-2; 250,000 mtpa of Benzene, xylene and toluene compound. I believe that this large annual capacity will further enhance SABIC's position among the world's largest petrochemical companies and strengthen its competitive capabilities in the global markets.
“YANSAB is a model of integration among SABIC industries and symbol of mutual cooperation between the government and private sectors.”
Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 150 billion), and one of the world’s 10 largest petrochemicals manufacturers. The company is among the world’s market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
SABIC’s profit rose to a record SR 19.2 billion (US$ 5.1 billion) in 2005, a 35% increase on 2004 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 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 associated with its oil production as the principal feedstock for 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, headquartered in Sittard, the Netherlands, employs 2,300 and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs. In 2004, SABIC Europe sold 6 million tons of polymers, base chemicals and intermediates, mainly in the European market.