11 June 2001 18:24 [Source: ICIS news]
LONDON (CNI)--Basell, the polyolefins joint venture between Anglo-Dutch group Shell and Germany's BASF, confirmed on Monday that it has signed the joint venture agreement with Saudi Arabia's National Petrochemical Industrialization Co (NPIC) for their Riyal 2bn ($533m/Euro630m) polypropylene (PP) project in Al Jubail, Saudi Arabia.
A statement from Basell said that Basell Holdings Middle East will hold a 25% stake in the project. NPIC, a 51% subsidiary of the National Industrialization Company of Riyadh, will take the remaining 75%.
The joint venture company will be called Saudi Polyolefins Company. It will build a new petrochemical complex, which is scheduled for completion in the second half of 2003.
It will comprise a 450 000 tonne/year dehydrogenation unit for converting propane into propylene using Catofin technology from ABB Lummus Global, and a 450 000 tonne/year PP plant that will produce homopolymers and random copolymers using Novolen gas phase technology. The PP will be marketed both domestically and internationally.
Kees Linse, Basell's chief operating officer for PP, said: "This is Basell's first important step into a major investment in the Kingdom of Saudi Arabia. This creates a new focus in our long-term business strategy."
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