Sipchem to proceed with construction of acetic acid and VAM plants in Jubail

23-Nov-06

Saudi International Petrochemical Co. (Sipchem) plans to proceed with construction of its acetic acid and vinyl acetate monomer plants in Jubail despite the case filed against it by Celanese Corp. of the US seeking to block three petrochemical companies from manufacturing the products. International Acetyls Co. and International Vinyl Acetate Co. are the other two partners. Sipchem opines that the basis for Celanese's lawsuit against them was false since they were using a different technology. Sipchem has shortlisted Eastman's technology for their 460,000 tpa acetic acid plant and Du Pont's technology for the 300,000 tpa vinyl acetate monomer plant. The company claims that they are not using any Celanese papers, trade secrets or documents. Sipchem recently offered a public issue of 45 million shares equal to 30% of its capital, Saudi markets' second largest offering in the past three years. This complex will be located at Sipchem's site in the industrial city of Jubail and is scheduled to start commercial operation in early 2009. In an announcement released from Texas, Celanese Corp. has sued Sipchem and two other chemical companies for what it called "violation of trade secrets." Celanese said it is seeking to block the three partners from building their vinyl acetate monomer and acetic acid plants in Al Jubail, as Celanese alleges that the companies hired its former employees and suppliers "with intimate knowledge of Celanese's trade secrets."