12-11-2012

SABIC and Shell progress on plans for expansion at SADAF joint-venture

Saudi Basic Industries Corporation (SABIC) and Shell announced today that they are progressing plans for the expansion of various projects at the Saudi Petrochemical Company (SADAF). The joint venture partners are also looking to expand their partnership beyond Saudi Arabia.

Both parties are developing a full range of polyols (a polyurethane building block) and styrene monomer propylene oxide (SMPO) plants at the existing SADAF site, which is located in one of the world’s largest and most competitive petrochemical complexes – the Al Jubail industrial zone on Saudi Arabia’s eastern coast. SABIC and Shell will jointly conduct the necessary studies to implement the project.

The proposed full range of polyols and SMPO plants would be the first of their kind in the Middle East. The assets would employ Shell’s proprietary polyols and SMPO technologies to produce chemical building blocks for the polyurethanes industry and petrochemicals sector in the Middle East and beyond. The partners are committed to the polyurethanes, styrene, propylene oxide and derivatives sectors, and have access to leading technologies as major international suppliers.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, commented, “We are pleased to be deepening our partnership with Shell. This investment will respond to demands for solutions from our global customer base. These sectors include building & construction, automotive & transportation, furniture & bedding, sports goods, food packaging, cold chain & refrigeration, and home appliances industries. Our polyurethane solutions will offer strength and flexibility, variable rigidity and insulation properties in a wide range of applications.”

Developing the polyurethane sector in Saudi Arabia will contribute to necessary energy savings and create job opportunities for the growing skilled workforce.

Ben van Beurden, Executive Vice President for Shell Chemicals, said, “SABIC ranks among the world’s top petrochemical companies and operates in over 40 countries.  We are delighted to expand our successful, long-standing partnership of more than 30 years. The proposed SMPO and polyols plants will help strengthen Shell’s global propylene oxide and polyols manufacturing capacity, boosting our supply to customers worldwide.”