SABIC, Mitsubishi Rayon sign $1bn joint venture project

10 August 2009 11:00  [Source: ICIS news]

SINGAPORE (ICIS news)--Petrochemical major Saudi Basic Industries Corp (SABIC) has signed a joint venture deal worth $1bn (€700m) with Japanese resin maker Mitsubishi Rayon, it said on Monday.

In a statement issued to the Saudi Stock Exchange (Tawadul), SABIC said the two companies signed a letter of intent (LOI) that sets out the parameters of the project.

The deal involves building a 250,000 tonne/year of methyl methacrylate (MMA) monomer plant that will start operations in 2013, SABIC said.

MMA and its derivatices acrylic resins are used in the manufacture of vehicle parts, visual displays and household appliances among other things.

Mitsubishi Rayon was reported to be being targeted for acquisition by Japan’s largest chemical producer Mitsubishi Chemical.

($1 = €0.70)

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By: Pearl Bantillo
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