Projects: SABIC studies polyurethane project

05 November 2010 17:34  [Source: ICB]

Saudi group starts talks with technology providers to become an integrated PU producer

SABIC is planning to move into polyurethane (PU) production as part of a drive to expand its performance chemical business.

Vice chairman and CEO Mohamed al-Mady said a feasibility study is being carried out and SABIC is seeking technology to enter the PU market.

SABIC is already in talks with technology providers and a systems house to produce PU products, he added.

The petrochemical giant would seek to become an integrated producer. "PU is important for SABIC, and we will implement plans in the near future," said Al-Mady, speaking at the K2010 trade fair for the plastics and rubber industry in Dusseldorf, Germany.

He also said SABIC would be interested in entering polyamide production if a current proposal to do so by another company in Saudi Arabia did not get the ­go-ahead. There is no room for two such units in the Kingdom, he said, while confirming that polyamide would fit with SABIC's plans to add value to its product portfolio. Saudi Arabia is looking at car production in the Kingdom, and SABIC wants to be able to supply this sector if or when it emerges.

The company's recent investment in polycarbonate (PC) production in Saudi Arabia also fits with this strategy.

Al-Mady said the new PC plant - part of the major new Saudi Kayan complex, which is being built at ­Al-Jubail - would come on stream in the first or second quarter next year.

Three units are already on stream, and 16 more plants are due up in 2011 and 2012, including phenol and cumene.

Al-Mady also revealed that SABIC is considering adding PC capacity in China, downstream of the recently commissioned ­Tianjin complex, a joint venture with Sinopec.


By: John Baker
+44 20 8652 3214



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