Saudi Basic Industries Corporation (SABIC), announced today that it has signed an agreement with Lurgi GmbH, a German firm, for the technology licensing and engineering that will allow SABIC to produce oleo-chemicals at its affiliate, Saudi Kayan Petrochemical Company (SAUDI KAYAN), following the completion of new facilities to be constructed in Jubail, Saudi Arabia.
Start up of the new production line is planned for the end of 2013 and will utilize renewable feedstock technology. "The feedstock used for this process is based on natural raw materials from renewable oils such as palm kernel oil and coconut oil. The use of renewable feedstock is part of SABIC's overall commitment to sustainability and strong corporate citizenship," said SABIC Executive Vice President, Technology & Innovation, Dr. Abdulrahman Al-Ubaid.
"SABIC's diversification into oleo-chemical products is in line with the company's strategy and drive to increase its performance chemicals portfolio. SABIC's expansion of the ethylene oxide derivatives business, with particular emphasis on ethoxylate surfactants, will further be strengthened through backward integration into natural fatty alcohols." commented SABIC General Manager - Functional Chemicals, Rusmir Niksic. SABIC's Global Business Manager - Ethoxylates and Amines, Turki Al-Hamdan, noted: "We aim to meet the ever-increasing demand for our products in the Middle Eastern consumer care industry. Furthermore, the natural alcohol plant allows for new investments in downstream industries in the region."
The new oleo-chemical plant will be the first of its type in the Middle East and includes an upstream natural acid unit, a wax-ester unit, a hydrogenation unit, a downstream natural alcohol fractionation and distillation line, as well as a complete glycerine line. The complex will be designed for the production of 83,000 tons per year of distilled natural alcohols of various compositions that are commonly used in household and laundry products, plasticisers, lube additives, plastic industries, cosmetics and personal care. Glycerine is used in food and beverage processing, personal care, pharmaceuticals and other applications.