Saudi Arabian Basic Industrial Corporation (SABIC), one of the largest global petrochem player, with a host of complexes in Yanbu and Jbeil is aiming to further develop the kingdom's hydrocarbon and mineral resources and market the produced petrochemical and conversion industry materials and products. Keeping this in mind, SABIC has planned to establish a new petrochemicals shareholding company "YANSAB" at an overall cost of USD 5 billion through which it estimates a production capacity of about 3.7 million tons of petrochemicals per year.
This Yanbu-based company will produce ethylene, propylene, ethylene glycol and two grades of polyethylene besides producing benzene through its aromatics plant among other products. SABIC, that is 70 percent state-owned, the rest being owned by nationals and Gulf citizens will hold 55% stake and will invest about US$ 2.7 billion in this project.Subsidiaries TAYF and IBN RUSHD will hold 10% stake each. The remaining 35% will be put to public subscription.
Foster Wheeler has been contracted by SABIC to manage the project, while Italian Technip is the Ethylene contractor. The remaining required contracts will be signed within the next two months and the expenses are likely to be covered through local and offshore loans.
06-Jun-05 
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