A consortium of three Saudi companies is in the final stages of forming a joint-stock petrochemical company with a Chinese partner. The three Saudi companies are Midroc, Sara Development Company and House of Invention (HOI) Company. Of the company’s US$1.76 billion capital, part will be offered as initial public offering (IPO) and the rest will be distributed among the three companies and their Chinese partner.
The newly formed company is to establish a US$6 billion petrochemical complex in the Jubail Industrial City, with a production capacity of 2 million tpa of basic and secondary petrochemical products. Negotiations are on with Saudi Aramco and Saudi Basic Industries Corporation (SABIC) for feedstock supplies. Initial phase of production would start in 2007 and the production of basic petrochemicals will commence by 2010.
23-Jan-06 
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