SAUDI ARABIA - Saudi International Petrochemical Co. (SIPC).

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. of Japan - and 75,000 t/y of butanediol (BDO) and maleic anhydride (MAH) in Phase-1 to be on stream in 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 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 & Co. 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 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 Corp. of the US for the MAH, and from DuPont of the US 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 the production of boats, cultured marble bathroom fixtures and vehicle body parts. The feedstock for MAH will be n-butane.

AH Al Zamil Group, one of the most remarkable family companies in Saudi Arabia, is gradually having a joint stock status. The group is run by 12 Al Zamil brothers (see who's who in next week's Review). A plant in Jubail for Gulf Stabilisers Industries (GSD) came on stream on April 9, 2001 with a capacity of 2,000 t/y of no dust blends (NDB), a combination of anti-oxidant additives, 3,000 t/y of anox-20 which is a primary anti-oxidant that increases polymer longevity, and 2,500 t/y of either anox-PP-18 or alkanox 240 which are primary and secondary anti-oxidants. The bulk 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 Group is having a 20,000 t/y carbon black plant at Jubail to be on stream in 2005. Bids for the $50-60m EPC contract were made in June 2003. Jacobs Engineering is the PMC which has also done the FEED work.

Arabian Alkali Co. (Soda), an affiliate of Al Zamil Group, is having a 50,000 t/y solid concentrate caustic soda plant in Jubail debottlenecked to raise output to 65,000 t/y. The plant went on stream in 1995. About 90% of its output is exported, mainly in the Middle East and East Africa.

Saudi Indo Petrochemical Co. (SIPCO), 60% held by Gulf Petroproduct Co. (GPC) and 40% held by a group led by AH Al Zamil Group, is having a $300m plant at Yanbu' to be on stream in 2004 to produce 100,000 t/y of n-paraffin and 80,000 t/y of linear alkyl benzene (LAB). The technology is to be 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 (see background in Vol. 57, No. 19).

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

Arabian Chemical Latex Ltd: This is a JV between E.A. Juffali & Brothers and the European subsidiary of Dow Chemical. In June 1995, it brought on stream a plant to produce 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 built in Jubail recently to produce reinforcement mats used in the production of waterproofing membranes. The plant will be on stream in 2003.

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.