19 December 2013 14:30 [Source: ICIS news]
KARACHI (ICIS)--Saudi Arabia’s Sahara & Ma’aden Petrochemicals Co (SAMAPCO) has secured a 660m Saudi Riyal (SR) ($176m) loan from the Public Investment Fund (PIF) to finance its ethylene dichloride (EDC) and caustic soda project, the company said on Thursday.
“SAMAPCO has signed today financing agreement to finance its EDC and caustic soda project. The agreement totaling $176m (SR660m) has been signed with the PIF,” the companies, Sahara Petrochemicals and Saudi Arabian Mining Co (Ma’aden), said in separate statements issued to Saudi stock exchange.
“The PIF loan is for a period of 14 years with one year as grace period and with semiannual repayments commencing on December 31, 2014.”
SAMAPCO is a 50:50 joint venture between Sahara Petrochemicals and Saudi Ma’aden.
The plant, which began trial runs in August, is designed to produce 250,000 tonnes/year of concentrated caustic soda and 300,000 tonnes/year of EDC.
Trial production is expected to continue for 4-6 months, including the necessary performance testing. The plant uses technology from Germany-based engineering firm Uhde.
Caustic soda is an essential feedstock for the refining of bauxite to alumina. It is produced from the electrolysis of brine, along with chlorine.
($1 = SR3.75)
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