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

Set up in June 1999, SIPC is capitalised at SR500m ($133m) divided into 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 and Qatar's Arab International Oil Co. SIPC is having a complex in built Jubail to produce 850,000 t/y of methanol and 50,000 t/y of butanediol (BDO) and maleic anhydride (MAH) in Phase-1 to be on stream in 2003, with the project manager 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 2004. The final configuration for Phase-3 is yet to be decided.

The licences are from Jacobs Engineering of the US for methanol, from Kvaerner Process of the UK for the BDO, 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 with the same partners, Gulf Stabilisers Group (GSG), is having a plant in Jubail to make 5,700 t/y of phenolic and phosphite anti-oxidants, used mainly to stabilise polymerisation. The $60m plant is to be completed by early 2002.

Arabian Alkali Co. (Soda), an affiliate of Al Zamil Group, has been doing feasibility studies to debottleneck its Jubail plant which has a nameplate capacity of 50,000 t/y of solid concentrate caustic soda. The plant went on stream in 1995. About 90% of its output is exported, mainly in the Middle East and East Africa.

If the project goes ahead, the plant's capacity would be raised to 65,000 t/y. This would make the company a market leader in solid caustic soda.

Al Rajhi International Contracting is having a $230m complex in Jubail to be on stream in late 2003 to produce 120,000 t/y of normal paraffin and 70,000 t/y of linear alkyl benzene (LAB).

The plant's feedstock will come from the adjacent Saudi Aramco Shell Refinery Co. (Sasref). Both products will be sold locally and abroad.

Gulf Petroproduct Co. (GPC), a Bahrain-registered 50-50 JV of Saudi Offset Limited Partnership (SOLP) and Tamilnadu Petroproducts of India, is proposing to have a $300m plant built at Yanbu' to produce 100,000 t/y of n-paraffin and 80,000 t/y of LAB. The technology is to be provided by UOP. Tamilnadu Petroproducts, having a similar plant in Chennai, India, in mid-March 2001 began seed marketing LAB in Saudi Arabia with the delivery of a 1,000-ton consignment to Arabian Sulphonates. SOLP was formed three years ago under the Saudi Economic Offset Programme to invest in economically feasible projects in the kingdom.

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., with a capital of SR 69m, has a plant being built in Jubail to produce reinforcement mats used in the production of waterproofing membranes. The plant will be on stream in 2003.

Al Hamrani Industrial Group, with a capital of SR 67.3m, has a plant being built in Jubail to produce unsaturated polyester resins and gelcoats, using feedstock from SABIC and fuel oil from Saudi Aramco. The plant will be on stream in the first quarter of 2002.