Saudi International Petrochemicals Company (Sipchem) has increased the debt financing by 32% of an upcoming acetyl complex. Sipchem has signed an agreement with SABB bank for 2.78 bln riyals (US$741.3 mln) to refinance the whole project partly due to a rise in costs and also to restructure the equity portion of the project.
Construction of the acetyl complex is 70% complete and the project is scheduled to commence production in Q2-09. Sipchem started developing the acetyl complex in 2005. The project targets annual production capacities of 340,000 tons of carbon monoxide, 400,000 tons of acetic acid and 330,000 tons vinyl acetate. The agreement replaces a previous accord signed in December 2006 under which 9 Saudi banks provided a loan of 2.1 bln riyals. Sipchem raised 2 bln riyals in February by selling stocks to its shareholders to help finance the acteyls project among future expansion plans.
19-May-08 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}