Price and market trends: Saudi Hydrogen Peroxide starts building H2O2 unit in Saudi Arabia

06 September 2013 09:57  [Source: ICB]

Saudi Hydrogen Peroxide Co has begun constructing a hydrogen peroxide (H2O2) plant at Jubail Industrial City II in Saudi Arabia, parent firms Solvay and Sadara Chemical said on 2 ­September.

The new plant, sited at Sadara's chemical complex, will have a production capacity ­exceeding 300,000 tonnes/year and is expected to start up in 2015, they said in a joint ­statement.

 New plant for Saudi Arabia

Copyright: Rex Features

Sadara, a joint venture between the Saudi Aramco and Dow Chemical, will use output from the plant as a raw material for a H2O2-to-propylene oxide (HPPO) manufacturing plant at the site, the firms said. This will in turn support Sadara's propylene oxide (PO) derivative units that will produce polyols and propylene glycol, they said.

Sadara is on track to deliver its first products from the new chemical production site at Jubail Industrial City II in the second half of 2015, with the complex in full operation in 2016, according to the statement.

The new plant is Belgium-based Solvay's third joint-­venture H2O2 plant, following its 230,000 tonne/year unit in Antwerp, Belgium and a 330,000 tonne/year facility in Map Ta Phut, Thailand.

Financial details of the new hydrogen peroxide plant were not disclosed.

According to analysts JP ­Morgan CAZENOVE the building - one of the world's largest hydrogen peroxide plants - will provide a key raw material to Sadara which will use the ­peroxide to produce polyols (precursor to polyurethane). "It is expected to strengthen Solvay's global leadership position in peroxide technology and markets," according to the group.

Additional reporting by Will Beacham


By: Nurluqman Suratman



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