SABIC delays expected PS expansion to 2012

16 May 2007 06:20  [Source: ICIS news]

By Prema Viswanathan

SINGAPORE (ICIS news)--Saudi Basic Industries Corp (SABIC) is looking to double its polystyrene (PS) capacity to 350,000 tonnes/year at Al Jubail by 2012, two years later than earlier expected, a source close to the company said on Wednesday.

The largest PS producer in the Middle East had earlier been looking at a possible expansion by 2010, although no firm start-up schedule had been announced.

Its search for improved process technology, the relatively low demand growth in PS in the Middle East and the high cost of styrene feedstock were among the reasons for the delay, the source said.

The source did not disclose details about the kind of technology SABIC was looking for or potential technology partners it was talking to.

Demand for PS is expected to grow at a far slower pace in 2007 in the Middle East compared with other polymers.

Suppliers and traders forecast demand growth for PS to be stable in the Middle East at up to 3%/year over the next few years,  lower than the 5-6% demand growth estimated for polyolefins and polyvinyl chloride (PVC).

Demand for PS in the Middle East is fuelled mainly by the electronics appliances and housewares segments. However, in the digital video disc (DVD) and housewares segments, PS was taking a hit from lower-priced polypropylene (PP), traders said.

PS production in the Middle East is around 255,000 tonnes/year.

The region's consumption of PS in 2006 was 350,000 tonnes. The only other producer in the region besides SABIC is Iran's Tabriz Petrochemical, which produces 80,000 tonnes/year at its plant at Tabriz.

SABIC also expects to complete by the end of 2007 a study on a possible expansion of its 40,000 tonne/year joint venture PS plant at Adana, Turkey.

SABIC is supplying styrene feedstock to the joint venture plant from its petrochemical complex at Al Jubail.

Demand for PS in Turkey is expected to grow by 10% in 2007 from 2006, suppliers and traders said. Turkey imports around 200,000 tonnes/year of PS, mainly from Europe, the Middle East and Asia.

By: Prema Viswanathan
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly