SABIC, ExxonMobil Saudi elastomers JV at engineering, design stage

01 March 2011 13:50 [Source: ICIS news]

Al-Jubail LONDON (ICIS)--SABIC’s proposed elastomers and carbon black joint venture (JV) with ExxonMobil in Saudi Arabia has progressed to the front-end engineering and design stage, it said on Tuesday.

The companies have selected Jubail Industrial City as the site for the 400,000 tonne/year facility, SABIC said.

This followed a comprehensive evaluation of numerous factors, including integration opportunities with their existing petrochemical JV at the Al-Jubail Petrochemical (Kemya) site, the company said in a statement.

“The project has reached the optimal industrial layout with the move to Jubail,” SABIC said.

“During FEED (front-end engineering and design) both partners, SABIC and ExxonMobil, are targeting development of a globally competitive project with best-in-class industry cost.”

The 50:50 project, originally announced in November 2008, will produce rubber, thermoplastic specialty polymers and carbon black for emerging local and international markets in Asia and the Middle East.

Neither project costs or a start-up schedule have been announced but media reports have estimated the total investment value at $5bn (€3.6bn), with start-up expected in 2013 or 2014.

($1 = €0.72)

For more on SABIC and ExxonMobil visit ICIS company intelligence

By: Graeme Paterson
+44 20 8652 3214

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