The Saudi-based Al-Babtain Arabian Company will establish a formaldehyde plant in the Jubail region. The 60-million Saudi riyal ($16 million) factory will be an extension of an already existing melamine production facility. The project has a target date of completion set for the end of 2003, reported Arab News.
A feasibility study carried out by the Doha-based Gulf Organization for Industrial Consulting (GOIC) has already established the plant’s viability. The facility will be 50 percent financed by the Saudi Industrial Development Fund, 25 percent by a commercial bank and 25 percent by private shareholders.
The plant will produce formaldehyde and some of its derivatives, such as UF-85, melamine and urea formaldehyde compound, melamine and urea resin, glazing powder and para-formaldehyde. Its initial manufacturing capacity would be 80,000 tons of formaldehyde per annum rising gradually to reach 100,000 tons.
Formaldehyde and its derivatives are used by the Kingdom’s petrochemicals industry. Urea formaldehyde finds applications as a fertilizer, while the chemical industry uses another of its derivative as a disinfectant. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
