SAUDI ARABIA - Saudi Int'l Petrochemical Co.

Set up in June 1999, SIPC is capitalised at SR500m ($133m) in 10m shares split among 73 shareholders from Saudi Arabia and other GCC countries, the main ones being AH al-Zamil Group, Olayan Financing Co., al-Rajhi Group, al-Tamimi Group, al-Jeraisy Group, Dubai Investments, Kuwait's National Industries Group, Qatar's Arab Int'l Oil Co. and Bahrain-based IDB Infrastructure Fund.

SIPC is having a complex in Jubail built to produce 970,000 t/y of methanol - for which the $250m EPC contractor is Chiyoda Corp. - and 75,000 t/y of butanediol (BDO) and maleic anhydride (MAH) in Phase-1 to be on stream in late 2005, with the PMC being Fluor Daniel; and 275,000 t/y of vinyl acetate monomer (VAM), and 250,000 acetic acid in Phase-2 to be on stream in late 2005. The final configuration for Phase-3, to include a world-class ethane cracker, is yet to be decided.

The $400m methanol plant will be for Int'l Methanol Co. (IMC), a JV of SIPC (65%) and Japan-Arabia Methanol Co. (35%) - the latter grouping four big Japanese firms led by Mitsui which will market most of the output abroad. The BDO unit will be for Gulf Advanced Chemical Industries Co. (GACIC), a JV of SIPC (60%) and four private partners (Abdel Latif Saud al-Babtain & Bros. and Sabih al-Masri), Huntsman of the US and Davy Process of the UK. Vinmar Int'l of the US will market 45,000 t/y of the BDO output and Netherlands-based Will & Co. will market another 15,000 t/y.

The licences are from Jacobs Engineering of the US for methanol, from Kvaerner Process of the UK for the BDO which also has the EPC contract for the plant, from Huntsman for the MAH, and from DuPont for the VAM. BDO is used to produce thermoplastic polyurethanes, elastic fibres, pharmaceuticals, solvents and plant protection coatings. MAH is used mainly in unsaturated polyester resins for production of boats, cultured marble bathroom fixtures and vehicle body parts. The feedstock for MAH will be n-butane.

AH al-Zamil Group is run by 12 al-Zamil brothers. A plant in Jubail for Gulf Stabilisers Industries (GSD) came on stream on April 9, 2001 producing 2,000 t/y of no dust blends (NDB), a combination of anti-oxidant additives, 3,000 t/y of anox-20 (a primary anti-oxidant that increases polymer longevity), and 2,500 t/y of either anox-PP-18 or alkanox 240 (primary & secondary anti-oxidants). Most of the feedstock comes from Europe. Owned 51% by HA al-Zamil Group and 49% by Great Lakes Chemical Corp. of the US, GSD is among a growing number of speciality chemicals ventures in the kingdom. A sister JV, Gulf Stabilisers Group (GSG), has a plant in Jubail making 5,700 t/y of phenolic and phosphite anti-oxidants, used mainly to stabilise polymerisation. The $60m plant was completed in 2002. AH al-Zamil has a 20,000 t/y carbon black plant at Jubail just completed.

Arabian Alkali Co. (Soda), an affiliate of al-Zamil Group, has had a 50,000 t/y solid concentrate caustic soda plant in Jubail debottlenecked to a capacity of 65,000 t/y. The plant went on stream in 1995. About 90% of its output is exported.

Saudi Indo Petrochemical Co. (SIPCO), 60% held by Gulf Petroproduct Co. (GPC) and 40% held by a group led by AH al-Zamil Group, has a $300m plant at Yanbu' on stream in 2004 producing 100,000 t/y of n-paraffin and 80,000 t/y of linear alkyl benzene (LAB). The technology was provided by UOP. GPC is a Bahrain-registered 50-50 JV of Saudi Offset Limited Partnership (SOLP) and Tamilnadu Petroproducts (TPL) of India. TPL, having a similar plant in Chennai, India, in mid-March 2001 began seed marketing LAB in Saudi Arabia with delivery of a 1,000-ton consignment to Arabian Sulphonates.

Al-Rajhi Int'l Contracting has a $230m complex in Jubail on stream in 2004 with a capacity to produce 120,000 t/y of n-paraffin and 70,000 t/y of (LAB). Foster Wheeler did the FEED. UOP provided the technology. The plant's feedstocks come from the adjacent Saudi Aramco Shell Refinery Co. (Sasref). Both products are sold locally and abroad.

Arabian Chemical Latex, a JV of E.A. Juffali & Bros and the European unit of Dow Chemical, in June 1995 it brought on stream a plant producing 30,000 b/d of styrene-butadiene latex. It has a plant in Jeddah producing extruded polystyrene since 1986.

Dermabit Waterproofing Industries Co. has a plant in Jubail on stream in 2003 producing reinforcement mats used in the production of waterproofing membranes.

Al-Hamrani Industrial Group has a plant in Jubail producing unsaturated polyester resins and gelcoats, using feedstock from SABIC and fuel oil from Saudi Aramco. The plant has been on stream since the first quarter of 2002.