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Saudi Basic Industries Corp (SABIC) has signed an agreement with the Japan Saudi Arabia Methanol Company (JSMC), renewing the partnership in the Saudi Methanol Company (Ar-Razi) for another 20 years, the petchem major said in a statement on Monday.
Under the agreement, which was approved by regulatory bodies, SABIC will raise its stake in Ar-Razi to 75 percent, reducing JSMC’s shareholding in Ar-Razi to 25 percent.
JSMC will pay more than SAR 5 billion to SABIC for renewing the joint venture partnership, which the latter will use, in part or whole, to finance refurbishment of Ar-Razi’s existing methanol plants or set up new ones.
By concluding the agreement, SABIC will become an equal co-owner with JSMC in a new, highly efficient methanol production technology, which will be freely commercialized inside or outside the Kingdom.
"Ar-Razi is the first joint venture in SABIC's history and one of the most successful partnerships that the company has had over 40 years,” said Yousef Al-Benyan, vice-chairman and CEO, SABIC.
“Renewing the partnership for more 20 years is proof of its success and contribution to the Saudi-Japan strategic cooperation, in line with Vision 2030,” he added.
Ar-Razi was established on November 24, 1979, as a 50/50 joint venture between SABIC and JSMC with the aim of developing, establishing, owning and operating a methanol complex.
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