Commercial production at Saudi Kayan, which was scheduled in H1-2011 has been postponed to H2. Reasons for the multiple delays in starting up over the past few years, are undecipherable. Saudi Kayan is a joint venture of Saudi Basic Industries Corporation (Sabic) and Al Kayan Petrochemical. Sabic holds 35% of the stock, Al Kayan 20% and the rest is publicly owned. The petrochemical company started its testing operations at its 26,000 tpa of polycarbonate plant in mid-March.
Meanwhile, Saudi Kayan Petrochemical reported a net loss of SR 16 million in Q2 as net debt in the H1 mounted to SR 27.5 billion, compared with SR 25.1 bln last year. The huge debt and the resulting higher interest is likely to impact on the company’s profit figure. Still, the Saudi Kayan will not suffer from debt repayment problems as it has the support of the parent company Sabic.
06-Aug-11 
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