23 July 2013 07:43 [Source: ICIS news]
DUBAI (ICIS)--Sipchem Chemicals Company (SCC) has signed an incorporation agreement with South Korea’s Hanwha Chemicals Corporation to form a new entity - Saudi Specialty Products Company - for establishing conversion projects in Saudi Arabia, the company said late on Monday.
The joint venture between SCC and Hanwha comprises two manufacturing facilities; one located at Hail that will produce 4,000 tonnes/year of ethylene vinyl acetate (EVA) films, while the second plant will be located at Riyadh and will manufacture plastic moulds up to 1,000 tonnes/year.
The total investment for the conversion projects will be Saudi riyal (SR) 225m ($60 million).
“This is in line with its commitment to implement fuel and feedstock volume allocation required to establish EA, EVA, WCC and conversion industries as issued by Ministry of Petroleum and Mineral Resources” SCC, an affiliate of Saudi International Petrochemical Company, said in a statement.
SCC owns 75% of the new company, while Hanwha owns 25%.
SCC will use state-of-the-art technology of Mitsui Chemicals Tohcello (MCTI) Inc. Japan, for the EVA film project and Kiefer Werkzeugbau GmbH, Germany, know-how transfer and project services for moulds project.
EVA film is used for crystalline silicon and thin film solar photovoltaic module production. “This project, first-of-its kind in the region illustrates Sipchem’s commitment toward the Kingdom's objective of becoming a driving force in renewable energy," said the statement.
Moulds Manufacturing Facility, located in Riyadh, has been designed to manufacture various types of moulds and dyes used in plastic and encapsulation plants.
The facility has infrastructure to design any industrial or commercial product and there-after make prototypes of the article, and produce the product in mass by building a mould or tool for the purpose.
The facility can test the performance of the mould or dye to the required standards, the statement added.
The Riyadh facility will help the converter industries of polymer, metal sheets, and aluminium to obtain tools and dyes to exact requirements. In addition to manufacturing new moulds and tools, the facility will assist in servicing and maintenance of existing moulds and dyes.
Sipchem said it will announce financial impact and any other developments in these projects in due course.
($1 = SR3.75)
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