Eastman and Sipchem In Acetyls Technology Deal

09 August 2004 00:01  [Source: ICB Americas]

Eastman Chemical Company and Saudi International Petrochemical Company (Sipchem) have signed an interim agreement for Eastman to license its proprietary acetyl co-production technology to Sipchem, which is working to establish a world-scale acetyls complex in Al-Jubail Industrial City, Saudi Arabia. Terms of the deal are not being disclosed.

The acetyls complex will focus on production of acetic acid and vinyl acetate monomer (VAM) and is expected to start up in 2008. Sipchem is currently building a 1 million ton-per-year methanol plant and a 75,000 ton butanediol plant at the site. The methanol plant is scheduled to come on stream in January 2005, while the butanediol plant will start up in December 2005.

Eastman’s acetyl co-productiontechnology will allow for the production of acetic acid and acetic anhydride at a cumulative capacity of 460,000 tons per year. In addition to the technology license, Eastman will provide technical support and market all acetic anhydride produced at the facility. Eastman and Sipchem anticipate finalizing the agreement in the coming months. Sipchem says the majority of the acetic acid manufactured at the plant will be used to produce VAM with technology from other sources.

“This agreement strengthens our position as a leading global supplier of acetic anhydride to the merchant market,” says Ron Lindsay, vice president and general manager of Eastman’s intermediates business. “The geographic position resulting from this relationship with Sipchem and the significant flexibility of Eastman’s acetyl co-production technology will allow us to reliably meet the long-term needs of our global acetic anhydride customers, particularly in the Asia-Pacific region.”

“The acetyl complex will provide further growth opportunities for Sipchem representing our vision for developing investments in the petrochemical industry to produce value-added products,” notes Ahmed Al-Ohali, president of Sipchem. In addition to its acetyls complex, Sipchem says it is evaluating plans for building other, important petrochemical plants.

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