SABIC-Mitsubishi JV inks $1.2bn Saudi MMA, PMMA plant contract
Tom Brown
26-Jun-2014
LONDON (ICIS)–A
joint venture between SABIC and Japan-based
Mitsubishi Rayon has signed a contract to
develop a methyl methacrylate monomer (MMA) and a polymethyl
methacrylate (PMMA) plants in the Kingdom, the Saudi
Arabia-headquartered company said on Thursday.
To be based in Jubail Industrial City, the MMA and PMMA
plants will have projected capacities of 250,000 tonnes/year
and 40,000 tonnes/year respectively, at an estimated cost of
Saudi riyals (SR)4.5bn ($1.2bn).
Construction has begun and the plants are expected to be
completed by the first quarter of 2017 and begin commercial
operations later that year. The projects will be funded with
a mix of cash and bank finance.
Taiwan-based engineering firm CTCI Corporation has been
awarded an engineering, procurement and construction (EPC)
contract to work on the construction of both plants, the
companies added. Other companies
understood to have bid on the engineering tender include South
Korea’s Daelim Industrial, France’s Technip and Spain’s
Tecnicas Reunidas.
SABIC and Mitsubishi Rayon first agreed to develop the plants
in May 2011, with the project initially
expected to be completed by the end of 2014. According
to SABIC, laying the groundwork for the project had taken
longer than expected.
“The process of preparing the fundamental engineering designs
and concluding the procurement agreements took longer than
scheduled. The aim was to complete the feasibility studies
and conclude some relevant agreements. During this period,
there was no significant financial impact,” SABIC said
in a filing on Saudi bourse Tadawul.
($1 = SR3.75)
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