Ibn Hayyan Plastic Products Company (TAYF), an affiliate of Saudi Basic Industries Corporation (SABIC) and Albemarle Corporation signed an agreement today to form a 50/50 joint venture, Saudi Organometallic Chemicals Company (SOCC), to build a world-scale organometallics production facility located in the Arabian Gulf industrial city of Al-Jubail. Initial estimates indicate the investment will be approximately SR 300 million (US$ 80 million).
SOCC will be the first company of its kind producing these products in the region. Construction of the facility is expected to begin before the end of the year 2009, with start-up anticipated by early 2012.
SABIC Vice Chairman and CEO Mohamed Al-Mady said, “This joint venture represents another important step in our vision to become the preferred world leader in chemicals. Moreover, this facility will provide strategically needed security for the supply of tri-ethyl aluminum catalyst, which is critically required for our multi-billion dollar polyolefins industry.”
Mark C. Rohr, chairman and chief executive officer of Albemarle said, “We are excited to bring this enabling technology to the Middle East and we are equally pleased to be doing so in partnership with SABIC, one of the world’s leading chemical companies. This new world-scale production unit will help us safely and efficiently serve our customers while also providing a foundation for Albemarle to capitalize on other opportunities emerging in the region.”
The new facility will have the capacity to produce 6,000 metric tons of tri-ethyl aluminum equivalents annually. Tri-ethyl aluminum is used primarily as a co-catalyst in Ziegler-Natta type systems for olefin polymerizations. The manufacturing joint venture will be established and uniquely positioned to ensure the effective and safe delivery of tri-ethyl aluminum to the region’s growing customer base.
