SABIC, Asahi Kasei, Mitsubishi in acrylonitrile JV

28-Apr-11

Japan's Asahi Kasei Corp, Mitsubishi Corp and Saudi Basic Industries Corp. (Sabic), plan to set up a joint venture for the production of acrylonitrile in Saudi Arabia with capacity to produce 200,000 tpa of ACN and 40,000 tpa of sodium cyanide in Al Jubail. Sodium cyanide will be produced from the hydrogen cyanide that is produced as the byproduct from the ACN production. SABIC will hold 50% stake in the new company, while the two Japanese partners will hold 25% stake each. This is part of Asahi’s strategy to gain the No. 1 position globally in the ACN market, and to meet rising demand in the Middle East and North Africa, as well as from Asian markets. The new company, Saudi Japanese Acrylonitrile Co (Shrouq) is planned with a paid-up capital of SR40 million and will help SABIC diversify its petrochemical portfolio to acrylonitrile butadiene stirene (ABS), carbon fiber, acrylic fiber, acrylamide. The three companies will start conducting basic engineering design and will take a final investment decision in 2012.