South Korea's SK Global Chemical Co. and SABIC have inked an agreement to set up a 50:50 joint venture to produce and sell its high-end polyethylene brand Nexlene. The two plan to establish the 50-50 joint venture in Singapore within this year that will build a Nexlene plant in Saudi Arabia at an investment outlay of US$595 mln. SK Global Chemical has a Nexlene plant with an annual production capacity of 230,000 tons in Ulsan, 414 kilometers southeast of Seoul, which was completed early this year and started production in May.
The agreement is subject to regulatory approval. The plants will produce metallocene linear low density polyethylene, polyolefin plastomers and polyolefin elastomers for packaging, automotive, healthcare, footwear and electrical and lighting. The first project to be operated by the JV is SK Global Chemical's 230,000 m tpa PE plant that was recently completed and started up at its petrochemical complex in Ulsan, South Korea. A second project is planned for Saudi Arabia. Over time, production bases will be established worldwide, it added.
28-May-14 
