Sipchem Launches its Olefins & Derivatives Complex
Saudi International
Petrochemical Company (Sipchem) has announced the award of the
Project Management Contract for its massive Polyoelfins complex
to Worley Parsons, Houston, USA and the Financial Advisory role
to HSBC. The massive, fully integrated olefins & derivatives
complex will consist of a cracker unit that will produce ~1.3 million
metric tons per annum (mtpa) of ethylene and propylene. These basic olefins will be used
in the production of ~800 thousand mtpa of polymers such as high density
polyethylene (HDPE), low density polyethylene (LDPE),
polypropylene (PP), and ethylene vinyl acetate (EVA). The project will complete the
products integration to further down stream added-value
performance products. Sipchem and its potential partners in this
project who signed the feedstock allocation letter with Saudi
Aramco: Mitsui of Japan, DuPont of USA, and Lucite of UK are
working on the final agreements of the projects which are
expected to be signed early next year, while start-up of projects
will commence in 2011. The total production of the
complex will amount to 3 million mtpa of 18 different products.
The project will fulfill obligations scheduled and agreed with
the Ministry of Petroleum and Minerals.
According to HE Mr. Abdulaziz Al-Zamil, Chairman of Sipchem, in
line with Sipchem’s strategy to create new
investment opportunities that stimulate economic and social
development, the company continuously explores the prospects of
phase-wise growth and expansion. Such projects add value to the
abundant natural resources of the Kingdom, and create additional
jobs for the growing number of Saudi youth. As per Mr. Al-Zamil,
the entire complex, estimated to cost more than US$ 7 billion,
will consist of 20 world scale plants and will employ more than
3,000 personnel.
Mr. Ahmad Al-Ohali, Executive President of Sipchem added that
Sipchem plans to establish a joint stock company to execute this
giant project in line with directives of relevant departments in
the Ministry of Petroleum and Minerals to engage maximum number
of Saudi citizens in these projects.
As Project Management Contractor, Worley Parsons will undertake
the overall management of the project and detailed feasibility as
well as other design work.
Ever since its inception in late 1999, Sipchem has been making
phenomenal progress in every aspect of its business. The Phase-I
of its development witnessed a successful completion and
operation of two world scale methanol and
butanediol plants
that are currently producing at their maximum capacity.
As part of Phase-II of development, construction of acetic acid, vinyl
acetate monomer, and carbon monoxide plants has already started in the second
half of 2006. These plants will start production late 2008 with a
total capacity of 1.15 million mtpa.
With the launch of the ambitious the phase-III olefins
& derivatives complex, Sipchem aims to be one of the
largest private, fully integrated petrochemical complexes in the
Middle East.
Sipchem, with a current total capital of SR 1.5 billion, actively
invests in petrochemical, chemical and hydrocarbon industries,
both basic and intermediate. The third quarter of this year had
witnessed a major landmark in the history of Sipchem when the
company went public and listed in Saudi Stock market.
Ineos to join Sipchem olefins venture in Saudi Arabia.
Ineos is reportedly negotiating with Saudi International Petrochemical Co (Sipchem) to join in the latter's planned $8 bn petrochemical complex that would feature an advanced olefins plant at Al Jubail, Saudi Arabia.
Ineos may take the place of Hanwha Chemical, whose chairman was placed in prison in Korea for assault in early 2007. The olefins venture is slated to be brought online in 2011. A 200,000 tonne/y acrylonitrile facility is included in the third phase of the project. The Sipchem venture will have capacity of 1 M tonnes/y of ethylene and 215,000 tonnes/y of propylene.
An earlier reported Ineos olefins jv in Al Jubail, called Ineos-Delta, is expected to be dropped. No feedstock allocation may likely be secured since Ineos-Delta has failed to meet the country's industrial investment regulations. Sipchem is also discussing a jv with Lucite for a 250,000 tonne/y methyl methacrylate plant in Al Jubail.
酢酸計画 Sipchem Signed Joint Venture Agreement for Carbon Monoxide Project
Sipchem and Eastman Sign Definitive Agreements for Acetyls Technology
Sipchem and DuPont Sign Final Agreements for VAM Technology
Celanese
Brings Suit Against Saudi Arabian Acetyls Company
（Sipchem denies
alleged claims in a lawsuit ）
September 06, 2006
Sipchem to Commence
Execution of Acetyls Complex Project
The Saudi International Petrochemical Company (Sipchem) announced
that it had commenced construction works for building the Acetyls
Complex, which consists of three plants: the Acetic Acid plant
(460 thousand tons per annum), the Vinyl Acetate Monomer plant
(300 thousand tons per annum) and the Carbon Monoxide plant (345
thousand tons per annum) in addition to the utilities and offsite
facilities at King Fahad Industrial Seaport in Jubail. This
complex will be located at Sipchem`s site in the industrial city
of Jubail. According to the stated plan of the project, this
complex will start commercial operation in early 2009. Being the
first of its type in the Middle East region, this complex
constitutes a great achievement for Sipchem and its affiliates
and its completion will be in line with Sipchem`s vision and
stated objectives of investment in value-added petrochemical
projects that would realize optimal returns for the shareholders.
This SR 4-billion project represents the second phase of
Sipchem`s projects.
Fluor Canada will be in charge of building the Acetic Acid plant
and the Vinyl Acetate Monomer plant, while Lurgi AG (Germany) /
AirLiquide JV (France) will be in charge of building the Carbon
Monoxide project.
The Acetic Acid and the Vinyl Acetate Monomer projects will be
jointly owned by the Saudi International Petrochemical Company
(Sipchem) and Helm Arabia GMBH (Germany), whereby the two
partners will be in charge of marketing the Acetic Acid and Vinyl
Acetate Monomer products in the global markets.
The ownership of the Carbon Monoxide project will be shared by
the Saudi International Petrochemical Company (Sipchem) and the
National Power Company (Saudi Arabia).
In this regard, Mr. Ahmed Al-Ohali, Sipchem President remarked
that this project would create over 500 direct job openings. Mr.
Ohali added that a few months ago Sipchem had recruited more than
100 young Saudi high school graduates who are now receiving
training at specialized pre-service training centers and will
join the projects` working team after graduation. Mr. Ohali also
added that products of the new complex would open up a wide scope
for various other processing industries in the Kingdom.
The Saudi International Petrochemical Company (Sipchem) is a
Saudi joint stock company established in late 1999. Sipchem
currently operates a Methanol plant with an annual production
capacity of one (1) million tons and a Butanediol plant with a
production capacity of 75 thousand tons per annum. It is to be
noted at this point that on Saturday 09 September 2006, Sipchem
will be offering 30% of its shares to the public.
October 16, 2005
Sipchem Signed Joint Venture Agreement for Carbon Monoxide
Project
Saudi International
Petrochemical Company (Sipchem) and National Power Company (NPC)
jointly announced the signing of a Joint Venture Agreement
establishing a 265,000 tons per year Carbon Monoxide project in
the Sipchem Acetyls Complex in Al-Jubail Industrial City. Carbon
Monoxide is a main feedstock for the Acetic Acid Project. By
signing this agreement with NPC, Sipchem has completed all the
Joint Venture Agreements for its Acetyls complex.
Sipchem announced earlier that it has signed Technology
Agreements for Acetic Acid and VAM with Eastman Chemicals and
DuPont, respectively. Sipchem also announced earlier the signing
of Joint Venture Agreements and Marketing and Off-take agreements
with Helm Arabia and Helm AG for the production and marketing of
Acetic Acid and VAM.
The three Acetyls Projects are currently in the bidding stage for
engineering and construction. It is expected to have the Acetyls
complex operational in 2008.
The Acetyls complex, the first of its kind in Middle East,
represents the 2nd phase of the company’s plan to create additional growth
opportunities for Sipchem. The company is committed to continue
producing high added value products which will increase the
benefits of shareholders.
Sipchem is a Saudi joint stock company founded in 1999 with
current paid in capital of SR 1,500 Million (US$400) million. Its
shareholders comprise leading corporate organizations and
investors in the Gulf Cooperation Council region. Sipchem
currently operates a 1.0 million tons per year methanol plant,
and has just started up a 75,000 tons per year BDO plant. Sipchem
recently mandated National Commercial Bank (NCB) as a financial
advisor and main underwriter to mange the company IPO which is
planned for the first quarter of 2006
NPC is a closed joint stock company established in 2001 with paid
in capital of SR200 Million ($53.3 Million) and owned by Al-Zamil
and Al-Saif groups. The company invests in various Power
production and distribution Projects.
May 07, 2005
Sipchem and Eastman Sign Definitive Agreements for Acetyls
Technology
Saudi International Petrochemical Company (Sipchem) and Eastman
Chemical Company (NYSE: EMN) today jointly announced they have
signed the definitive agreements for Eastman to license its
proprietary acetyl co-production technology to Sipchem. The
licensing agreement is part of Sipchem’s plan to establish a world-scale
acetyls complex in the Kingdom of Saudi Arabia through expansion
of its petrochemical complex in Jubail Industrial City. The
acetyl complex is expected to start-up in 2008. Terms of the
agreements were not disclosed.
Eastman’s acetyl co-production technology
will allow for production of acetic acid and acetic anhydride at
a cumulative capacity of 460,000 tons per year. In addition to
the technology license, Eastman will provide technical support
and market all acetic anhydride produced from the facility.
According to Ahmed A. Al-Ohali, president of Sipchem, “The acetyl complex represents our
planned Phase II project to provide additional growth
opportunities for Sipchem and continuing success on our journey
to produce value-added products and superior returns for our
shareholders. Combined with the natural gas feedstock from Saudi
Aramco, and methanol from Sipchem`s affiliate International
Methanol Company located at the same site, we have planned a
world-class complex in terms of technology, partners and
value-creating potential." Sipchem had previously announced
acquiring licensing rights from DuPont for vinyl acetate monomer.
Ron Lindsay, vice president and general manager of Eastman’s performance chemicals and
intermediates business, said, “This agreement leverages the
proprietary technology and know-how of Eastman and combines those
with Sipchem`s strengths within Saudi Arabia to provide a win-win
opportunity for both parties. This second source of acetyls for
Eastman will allow us to reliably meet the long-term, growing
needs of our global acetic anhydride customers, particularly
within the Asia Pacific region.”
Sipchem is a Saudi
joint stock company founded in 1999 with current paid in capital
of US$173 million with participation from leading corporate
organizations and investors in the Gulf Cooperation Council
region. Sipchem currently operates a 1.0 million tpy methanol
plant, and is constructing a 75,000 tpy butanediol plant,
scheduled for start-up in December 2005.
Eastman Chemical Company (NYSE:EMN) manufactures and markets
chemicals, fibers and plastics worldwide. It provides key
differentiated coatings, adhesives and specialty plastics
products; is the world’s largest producer of PET polymers
for packaging; and is a major supplier of cellulose acetate
fibers. Eastman is leveraging its heritage of innovation and
strength in polyester, acetyl and organic chemistry technologies
to drive growth and meet increasing demand in four select
markets: building and construction, packaging, health, and
electronics. Founded in 1920 and headquartered in Kingsport,
Tenn., Eastman is a FORTUNE 500 company with 2004 sales of $6.6
billion and approximately 12,000 employees.
August 09, 2004
Sipchem and DuPont Sign Final Agreements for VAM Technology
Saudi International
Petrochemical Company (Sipchem) has signed Definitive Agreements
with DuPont to license DuPont technology for a new 300,000
tons/yr. vinyl acetate monomer (VAM) manufacturing plant to be
located in Al- Jubail Industrial City, Kingdom of Saudi Arabia.
DuPont will provide its VAM technology under license and provide
technical assistance for the Sipchem VAM facility.
The planned VAM facility will be integrated into other
petrochemical facilities currently planned for the site. Sipchem,
a Saudi joint stock company, is capitalized at US$ 173 million
(SR 650 million). Sipchem plans to produce and market VAM, maleic
anhydride, butanediol, methanol and acetic acid from the new
world-class manufacturing site facilities.
H.E. engineer Abdulaziz A. Al-Zamil, chairman of Sipchem said
"The acetyl complex will provide further growth
opportunities for Sipchem representing our vision for developing
investments in the petrochemical industry to produce value-added
products benefiting from the support of the Saudi Government and
the available resources of the region".
"DuPont is pleased to have its VAM technology and expertise
chosen for a project of this scale," said Craig Binetti,
vice president and general manager ? DuPont and president of
DuPont Packaging and Industrial Polymers. "Licensing our
technology to Sipchem demonstrates our commitment to technology
investment into global cost-advantaged regions. It also allows
DuPont strategic, sustainable development in key regions of the
global economy. Our relationship with Sipchem is a model for
future growth."
Ahmed A. Al-Ohali, president of Sipchem says, “Our agreement with Dupont for the
supply of the VAM technology conclude our efforts in securing
sound know-how for the acetyls complex. Associating with
carefully selected technology leaders is an important factor for
the success of Sipchem. Our license agreement with DuPont and the
earlier announced license agreement with Eastman Chemical Company
for the acetic acid will enable Sipchem to have a good start in
entering the acetyls business. Competitive feedstock and
proximity to key markets are other factors for our success".
Sipchem is a Saudi joint stock company with participation from
leading corporate organizations and investors in the Gulf
Cooperation Council region. In its first phase development
strategy, Sipchem is constructing a 1.0 million tpy methanol
plant, scheduled to be operational in January 2005 and a 75,000
tpy Butanediol plant, scheduled for start-up in December 2005. In
addition to the acetyls complex which is expected to come on
stream in 2008, the company is reviewing plans for building other
important petrochemical plants.
DuPont is a science company. Founded in 1802, DuPont puts science
to work by creating sustainable solutions essential to a better,
safer, healthier life for people everywhere. Operating in more
than 70 countries, DuPont offers a wide range of innovative
products and services for markets including agriculture,
nutrition, electronics, communications, safety and protection,
home and
2008/6/17
plastemart.com
Sipchem shelves plans of 1.3 mln tpa cracker project at Al-Jubail
Major challenges on costs, schedule, availability of qualified
contractors and financing faced by Saudi International
Petrochemical Co (Sipchem) has forced the company to abandoned
plans for a 1.3 mln tpa cracker project at Al-Jubail, Saudi
Arabia. Besides the cracker, Sipchem has also dropped plans for low-density
polyethylene (LDPE), high density PE (HDPE) and polypropylene
(PP) plants
that were part of the original project configuration.
Sipchem, which has received gas allocation for its cracker
project, will focus on differentiated products which include ethylene vinyl
acetate (EVA), acrylonitrile (ACN), methyl methacrylate (MMA),
polymethyl methacrylate (PMMA), polyacetals and polyvinyl acetate
(PVA), sodium cyanide and carbon fibre.
Sipchem sells 11% of
shares in 2 affiliates
The Saudi International Petrochemical Company (Sipchem)Saudi
International Petrochemical Company (Sipchem) yesterday announced
the completion of the sale of 11 percent of shares in two of its
affiliates (International Acetyl Company and
International Vinyl Acetate Company) to the Kuwait-based Ikarus Petroleum
Industries Company.
The shares were valued at SR240 million.
According to a company statement, Sipchem will maintain ownership
of 76
percent of
shares in both the companies. Sipchem had previously announced
the selection of Ikarus as its new partner in both companies with
an intended share of 15 percent. However, the two parties agreed
at later stage to reduce this percentage to 11 percent. As a
result of this deal, Sipchem will realize a profit of SR55
million which will be reflected in the financial statements of
the second quarter of this year.
The International Acetyl Company and International Vinyl Acetate
Company are limited liability companies and are established in
the Jubail Industrial City with a total paid-in capital of SR1.68
billion.
The two companies will produce 460, 000 metric tons of acetic
acid, acetic anhydride and 330, 000 metric tons of vinyl acetate
monomers. Both companies are expected to start production in the
third quarter of this year.
Established in 1999, Sipchem actively develops and invests in
petrochemical and chemical industries, both basic and
intermediate to produce chemicals used to manufacture a multitude
of products that improve the lives of people worldwide.
Through its affiliates, International Methanol Company (IMC) and
International Diol Company, Sipchem currently produces over one
million mtpa of methanol and 75,000 mtpa of butanediol.
IAC is a limited liability company registered in January, 2006, owned 87% by Sipchem, 10% by Helm Arabia and 3% by Ministry of Endowmentsイスラム省. IAC is intended to build, own and operate the Acetic Acid (AA) plant. Helm Arabia is a special purpose company established in Hamburg, Germany between Helm AG of Germany, a leading multinational producer and distributor of petrochemical products and Thales International Offsites, a subsidiary of Thales Company of France, a leading international electronics and systems group, serving government and business customers worldwide.
The plant is designed to produce up to 460 thousand mtpa of acetic acid and up to 50 thousand mtpa acetic anhydride, that will start commercial operation in early 2009.
The feedstock, namely methanol, carbon monoxide and hydrogen will be provided internally by other Sipchem affiliates, viz. International Methanol Company (IMC) and Industrial Gases Company (IGC), thus ensuring an uninterrupted supply of feedstock.
IVC is a limited liability company registered in January, 2006, owned 87% by Sipchem , 10% by Helm Arabia and 3% by Ministry of Endowmens. IVC is intended to build, own and operate the Vinyl Acetate Monomer (VAM) plant. Helm Arabia is a special purpose company established in Hamburg, Germany between Helm AG of Germany, a leading multinational producer and distributor of petrochemical products and Thales International Offsites, a subsidiary of Thales Company of France, a leading international electronics and systems group, serving government and business customers worldwide.
The plant is designed to produce up to 330 thousand mtpa of VAM, which will start commercial operation in early 2009.
The feedstock, Acetic Acid, will be provided internally by other Sipchem affiliates, viz. International Acetyl Company (IAC) thus ensuring an uninterrupted supply of feedstock.
Sipchem signs $1bn JV
with Korea's Hanwha
Saudi International Petrochemical Co (Sipchem) said it had agreed
to form a joint venture with South Korea's Hanwha Chemical Corp
to build polymer plants in Saudi Arabia.
Sipchem
said it would hold a 75 percent stake in the joint venture, and
Hanwha would hold 25 percent.
The plants, which will cost 4 billion riyals ($1.07 billion),
will produce 200,000 tonnes of ethylene-vinyl
acetates and 125,000 tonnes of poly-vinyl per year, Sipchem said in a
statement posted on the Saudi bourse's website on Sunday.
The products are used in the manufacture of sports shoes,
clothing and wood.
'The raw material will be provided by (Saudi state oil firm)
Aramco and Saudi Basic Industries Corp (Sabic) some of Sipchem's
affiliates,' Sipchem said.
The plants were expected to start production towards the end of
2013, Sipchem said.
Sipchem currently operates two plants that produce methanol and
butenediol. It expects to start within the next two months
production at three other plants that produce carbon monoxide,
monovinyl acetate and acetic acid, it added.
The joint-venture with Hanwha will bring the value of Sipchem's
overall investments to 13 billion riyals by the end of 2013, it
added.
Sipchem Launches Two Jubail Chemical Plants
Saudi International
Petrochemicals Company (Sipchem) has recently begun production at
two out of three new chemical plants at its Jubail Industrial
City production complex.
The new plants include a 345,000 ton per year (t/y) carbon
monoxide plant
and a 450,000 t/y acetic acid plant. A third 33,000 t/y vinyl
acetate monomer (VAM) plant will begin production in
July 2010.
U.S. company Fluor Corporation built the acetic acid and VAM
units under contracts awarded in 2005, and a joint venture of
Germany’s Lurgi and France’s Air Liquide built the carbon
monoxide plant.
U.S. companies Eastman Chemical and DuPont supplied the
technology for the acetic acid and VAM production units,
respectively.
Aug 4, 2010 Reuters
Saudi's Sipchem,
Rhodia team up in ethyl acetate
* Sipchem says to build $107 mln ethyl acetate plant
* French Rhodia to provide technology, ethanol feedstock
* Sipchem to fully own the plant, which will start in 2013
French chemical group Rhodia will help Saudi International
Petrochemical Co 2310.SE (Sipchem) set up the first ethyl acetate
plant in the region to rival major commodity producers such as
BP.
The plant, wholly-owned by Sipchem, will start in 2013 and will
have a 100,000-tonne annual production capacity,
Sipchem said in a statement posted on its website on Wednesday.
Rhodia will provide the plant with ethanol
feedstock and technology and will also market the product, Sipchem said.
ethyl acetate （酢酸エチル）製法
１）酢酸＋エタノール
２）アセトアルデヒドー（塩基触媒）→酢酸エチル
３）エチレン＋酢酸 （昭和電工）
Sipchem, which already
produces the other acetic acid feedstock needed to make ethyl
acetate, will spend 400 million riyals ($107 million) to build
the plant.
Rhodia's agreement with Sipchem is the "first step to a
greater cooperation with Sipchem and other partners in the
region", the statement quoted Vincent Kamel, a senior
executive at the French company, as saying.
An undisclosed share of the cost will come from financing
sources, which Sipchem did not specify, and the remainder from
its own resources.
"The plant will be designed as a swing facility to produce
butyl acetate as well. The ethyl acetate plant is expected to be
commissioned during 2013," Sipchem said.
"It will be the first time ethyl and butyl acetates are
produced in the region. It is expected that the ethyl acetate
plant caters to domestic needs and demand from abroad."
Ethyl acetate is mainly used as a solvent and diluent. Coffee
beans for instance are decaffeinated with this product, which is
also used in perfumes. Butyl acetate is another type of solvent
used mainly to give fruit flavours to products such as ice cream,
cheeses and candy.
2011/10/4 zawya.com
Saudi Arabia: Sipchem begins work on phase III projects
Saudi International Petrochemical Company (Sipchem) has started construction
work on two new plants being built under its Phase III
expansion program.
Turnkey contracts to build the plants in Jubail Industrial City had been
announced earlier.
The two Sipchem plants will be the first of their kind in the region, according
to officials.
The first plant produces ethylene vinyl acetate (EVA) and
low density polyethylene (LDPE) and the second facility will make
ethyl acetate and butyl acetate.
The production capacity of the vinyl acetate plant
will be 200,000 tons per annum.
It will be operated by the
International Polymers Company
Limited, an affiliate of Sipchem, founded in 2009.
Sipchem and Hanwha Chemical of South Korea have 75 percent
and 25 percent stakes in the venture respectively. The total cost of the
project is estimated at around SR3 billion.
同社はエチレン酢ビの生産のため、ExxonMobil の高圧法LDPE技術を導入、本事業を韓国のHanwha Chemical とのJV（Sipchem 75%、Hanwha 25%）とすることで合意したと発表している。
The project's main contractor, Korean company
GS Engineering & Construction Co., started construction work at the site last
month.
The plant is scheduled to start operations during the second quarter of 2013.
Sipchem announced a technology license agreement with ExxonMobil in May 2009 for
this plant.
Both Sipchem and Hanwha will be in charge of global marketing operations for
these products.
EVA is used as a feedstock in the production of heat soluble adhesives, resin
products and high-quality sports bandages.
LDPE is used as a feedstock in the production of
various types of containers, bottles and medical detergents. The
ethyl acetate and butyl acetate plant will have a
production capacity of 100,000 tons per annum.
The main Korean contractor, E Tech Engineering and Construction Co., has already
started construction work at the site.
This plant is expected to start production in the first quarter of 2013.
The total cost of the project is estimated at around SR350 million.
The ethyl acetate plant will cater to domestic and global markets. Its products
will be used as a solvent in the manufacture of inks and industrial fluids and
granules. The project will be wholly owned by Sipchem.
2010/8/12 サウジのSipchem、酢酸エチルを事業化
Abdulrahman Al-Saif, president, projects and services, pointed out that these
plants are being built within the framework of Sipchem's strategic expansion
plan.
He said the company had obtained the best technical and financial proposals for
the implementation of these projects. He said such products will open up many
investment opportunities for Sipchem in advanced industries.
He said the company is in the final stages of securing the necessary funding for
these projects.
April 26, 2011 Sipchem
Sipchem & Hanwha Chemical Sign Joint Venture Agreement for Building a Polymers
Compounding Plant
Saudi International Petrochemical Company (Sipchem) announced today 26 April
2011 that it has signed a joint venture agreement with Hanwha Chemical
Corporation to build Polymers Compounding plant to
produce special resin grades to be used to manufacture Wire and Cable products.
The plant will be built at Sipchem site in Jubail Industrial City, Kingdom of
Saudi Arabia with an estimated cost of around SR 225 million (US$ 60 million)
and expected to start production during the second quarter of the year 2013.
This plant comes as a part of Sipchem’s third phase
expansion program.
The new Wire & Cable Polymers Compounding Company
will be owned 50% by Sipchem and 50% by Hanwha Chemical.
The products will be marketed by the new company in the Middle East and Europe.
The major feedstock for the plant, Low Density Polyethylene (LDPE) and Ethylene
Vinyl Acetate (EVA), will be sourced from the International Polymers Co. one of
Sipchem affiliates. The products will be used to produce power cables insulation
materials which have a wide usage in the region. The new project will be
financed by the partners and other financial institutions which have not yet
been determined.
2011/12/14 Arab News
Sipchem acquires Aectra SA
Saudi International Petrochemical Co. (Sipchem) Wednesday announced that its
affiliate, Sipchem Marketing & Services Co. (SMSC), has acquired Aectra SA, a
Swiss petrochemical trading and marketing company. Sipchem CEO Ahmad Al-Ohali
and Aectra CEO Rene Fresco concluded the acquisition deal at the Atlantis hotel
in Dubai on Wednesday.
Welcoming Aectra SA to the Eastern Province-based Sipchem family, Al-Ohali
stressed that the acquisition was an important milestone for Sipchem. “Aectra SA
gives Sipchem immediate access to experienced and proven marketing, logistics
and trading expertise in the key European market,” he said.
“Since Sipchem’s manufacturing excellence and high-quality products are
perfectly matched by Aectra SA’s marketing, logistics and trading expertise, the
two companies will deliver real value to their customers and will provide the
Sipchem family with a powerful platform for future growth,” Al-Ohali said.
Fresco described Aectra SA and Sipchem “a winning combination” and said that all
members of the Aectra SA team were excited about working with Sipchem with a
view to expanding the customer base and providing excellent service to all
customers, big and small, throughout Europe.
Established in 1995, Aectra SA is located in Lutry, Switzerland. Fresco, its
CEO, has nearly 30 years’ experience in European trading and logistics.
Aectra SA has an established network of agents and customers throughout Europe,
and enjoys good professional relationships with major producers. Its employees
have proven experience in European logistics.
Established in December 1999, Sipchem actively develops and invests in
petrochemical and chemical industries, both basic and intermediate products used
to manufacture a multitude of end-products. Through its five operating
affiliates, Sipchem currently produces about 2.2 million of chemicals.
November 14, 2012 Sipchem
Sipchem Announces the Groundbreaking of EVA Films Project in Hail City
Saudi International Petrochemical Company (Sipchem) announces the groundbreaking
of its Ethyl Vinyl Acetate (EVA) films project in
Hail Industrial City on Wednesday 14/11/2012 under
the patronage of His Royal Highness Prince Saud bin Abdulmohsen bin Abdulaziz
Al-Saud, Governor of Hail, Chairman of the High Commission for Development of
Hail Region.
The project is built with a total investment of about SR 120 million on an area
of 40,000 m2 with annual capacity of 4,000 metric tons per
annum. The project is 100% owned by Sipchem Chemicals Company (SCC), an
affiliate of Sipchem and its product will be marketed by Sipchems affiliate,
Sipchem Marketing and Services Company (SMSC). The project will be financed by
the company and other local financers. It is worth mentioning that EVA films are
used in the manufacturing of solar cell panels which are used in the production
of electricity. The project is expected to be operational by the 3rd quarter of
2013.
Sipchem considers the establishment of this project in Hail as an inspiring
motive in the creation of investment opportunities by establishing new projects
using the product in addition to the creation of various employment
opportunities for the people of Hail.
Phase 1 of Ha'il Industrial City was established in 1423 (2003) on an area of 800 thousand square meters. Raw material used for food industries and metal industries such as gypsum, boxite and magnisium is available in the surrounding area. Expressway and railway network which links the area to other regions is also available.
Saudi International Petrochemichal Co. : Sipchem Opens Singapore Office
Sipchem Marketing Company (an affiliate of
the Saudi International Petrochemical Company (Sipchem) took another important
step forward today to strengthen its global petrochemical marketing and service
delivery when it formally opened its office in Singapore.
The opening ceremony was attended by Sipchem's Chairman, H.E. Abdulaziz Al-Zamil,
Mr. Ahmad Al-Ohali, Chairman of Sipchem Marketing Company (SMC), and other
company officials.
In his opening address Sipchem's Chairman, H.E Abdulaziz Al-Zamil remarked that
both Sipchem and SMC were particularly pleased to be able to strengthen their
relationship with Singapore through the opening of an office. "Singapore is a
well-established and important logistics and trading hub for the petrochemical
industry and an ideal gateway for delivering excellent service to customers
throughout Asia", said H.E Abdulaziz Al-Zamil
Mr. Ahmad Al-Ohali speaking on behalf of SMC emphasized that the opening of the
Singapore office demonstrates SMC's commitment to delivering world class
services to its customers throughout Asia. "The opening of an office in
Singapore signals a clean break from our past practice of servicing customers'
needs through off takers and distributors, and emphasizes the importance SMC
places on its customers throughout Asia" said Mr. Al-Ohali. "The Sipchem
Singapore office will initially sell and market all Sipchem's products directly
to enhance transparency and customer relations versus past reliance on marketing
by specialized marketing companies. This year, Sipchem is marketing globally all
of its products from the Butanediol plant and it is also increasing its
marketing volumes of Methanol. Our marketing expansion plans have been completed
in anticipation of selling new products that will come on steam later during
this year" Al-Ohali added.
SMC, the marketing arm of the Sipchem group of companies was formed in 2007 with
the express purpose of delivering world class services and petrochemical
products internationally. Since its formation SMC has successfully expanded its
operations in its key markets in the Middle East, Europe and Asia. In 2011 the
SMC Board of Directors recognized that the sustainable delivery of world class
services and products requires that SMC have a direct relationship and establish
a tangible presence with its customers. To this end SMC established an office in
Switzerland to provide marketing and logistic services to its customers in
Europe. The Swiss operation has enabled SMC not only to service the needs of its
customers but also provided a solid base for growth throughout Europe. The
opening of the Singapore office positions SMC close to its customers throughout
Asia, gives SMC access to an outstanding infrastructure and is the ideal
platform for SMC to further expand its business throughout the region.
SMC focuses primarily on the marketing and sale of
Methanol, BDO, THF, AA and VAM. During 2013 its product portfolio will
expand to include EVA, LDPE, EA and BA, with further products to be introduced
in 2014.
Saudi Arabia's Sipchem and Sahara plan 8.25bn
riyal petchem merger
Saudi International Petrochemical Company or Sipchem
signed a non-binding agreement to buy Sahara
Petrochemicals Company in a deal valued at 8.25 billion riyals (Dh8.1bn)
four years after merger talks stalled.
Sipchem will make an offer to buy all of Sahara's shares and each Sahara
shareholder will receive 0.8356 new Sipchem shares, the companies said on
Wednesday in statements to the Saudi stock exchange. Sipchem and Sahara are
working to enter a binding agreement by February 28.
The merger would help in "increasing scale and resilience in the evolving
petrochemicals sector, both in the kingdom and internationally," the companies
said.
The agreement comes after the two companies called off talks for a planned
tie-up in 2014, citing an inadequate regulatory framework. The Capital Market
Authority, Saudi Arabia's markets regulator, has since introduced laws to
facilitate mergers and acquisitions activity. The proposed merger comes as
consolidation gains momentum in Saudi Arabia's corporate sector, most recently
with Saudi Aramco expressing interest in buying a stake in petrochemical maker
Sabic.
The deal between Sipchem and Sahara is valued at 8.25bn riyals as per Tuesday's
closing share price.
A potential deal would benefit the companies with cost synergies, stronger
product portfolio, better access to capital markets and a broader feedstock
supply, according to the statements.
"The proposed transaction is expected to provide synergy potential, from both a
revenue and cost perspective, which is expected to drive value for
shareholders," the companies said.
Shares in Sipchem rose 0.7 per cent at the market close in Riyadh on Wednesday
while Sahara shares rose 3.9 per cent.
Sipchem hired HSBC Saudi Arabia as its financial advisor and Khoshaim &
Associates and Allen & Overy as its legal advisors.
Sahara appointed Morgan Stanley Saudi Arabia as its financial advisor and
Abuhimed Alsheikh Alhagbani Law Firm and Clifford Chance as its legal advisor.
The proposed stake sale of Sabic, the region’s biggest chemicals manufacturer,
to the world's top oil producing company Saudi Aramco is expected to set into
motion more consolidation in the regional industry, according to analysts.
Petchems contributed to about $43.8bn (Dh161bn) to GCC economies in 2016 alone,
according to the Gulf Petrochemicals and Chemicals Association, the sector's
regional representative body.
Development of petchem projects has accelerated in the GCC over the past couple
of years as national oil companies fine-tune plans to generate more value from
their crude grades.
