SABIC to invest SR1.6bn in two silicon plants in Jubail, Saudi Arabia

LONDON (ICIS)–SABIC has signed two memorandums of understanding (MoU) with Germany’s SCHMID and RIWAQ Industrial Development to establish two silicon plants in the Jubail Industrial City in east Saudi Arabia, the Saudi petrochemicals major said on Tuesday.

SABIC said the Saudi Riyal (SR) 1.6bn ($427m) project would reinforce its intended push to develop Saudi downstream industries and attract foreign investment to the country.

Silicon’s end markets include the semiconductors industry, electronics and solar cells, and batteries.

SABIC also said on Tuesday it had committed to a R4bn project providing part of the raw materials needed under a project agreement with Pan Asia PET, a project that will be launched by the Chinese company in Jazan Industrial City.

“This is part of SABIC’s commitment to localising knowledge, technology and industry, maximising local content and attracting foreign investment, under its role to enabling Saudi 2030,” said SABIC’s CEO Yousef Al-Benyan.

The Vision 2030 was presented by the country’s government in 2016 as part of its drive to move the economy away from crude oil production and into more downstream industries.

“SABIC has aligned all its strategies to serve the growth and transformation programs to achieve national development priorities,” added Al-Benyan.

($1 = SR3.75)