Advanced Petrochemical to expand business range on MSCI inclusion

Advanced Petrochemical Co.’s inclusion in the MSCI EM Index positively contributes to expanding its business range by increasing competition to include local and global peers, the company said in a statement. 

The move serves as an opportunity for the company to demonstrate its capabilities, a matter that boosters a positive image to international investors. 

“The company works according to strategic plans set up by the board of directors whether in managing the operational processes of the existing plants or in evaluating and assessing some of the available opportunities for future expansions which maximize the rights of its shareholders and contribute to the development of the Kingdom's national economy,” Advanced added.

Several investment projects have been studied by the petrochemical producer locally and overseas, and investment partnerships have been formed with major international firms in the petrochemical industry through the company’s subsidiary, Advanced Global Investment Co.

Advanced Global’s joint venture with South-Korea based SK Gas Co. led to the setting up of SK Advanced Co. to establish, own and operate a PDH plant for propylene production in the Asian country with an annual design capacity of 600,000 metric tons.

The project started commercial operations on May 16, 2016. 

SK Advanced has also signed a joint venture agreement with South Korea’s Polymerae Ltd. to establish a polypropylene plant in South Korea with an annual design capacity of 400,000 metric tons. The facility is expected to launch commercial operations in 2021.

Meanwhile, the Saudi Ministry of Energy gave a green light to Advanced Global for allocation of the required feedstock to set up a propane dehydrogenation (PDH) unit (to produce propylene) and polypropylene unit (to produce PP) with a capacity of 750,000 tons each annually in Jubail Industrial City.

Accordingly, the company signed two memorandums of understanding (MoUs) with SK Gas. The first MoU aims to develop a propane dehydrogenation and polypropylene in Jubail Industrial City, with estimated total cost of $ 1.8 billion (SAR 6.75 billion). The second one is for the development of a polypropylene compounding unit. 

A third MoU was inked with SK Gas to conduct a detailed feasibility study for a state of the art mixed feed or liquid cracker along with downstream products in Saudi Arabia. 

“Advanced has a strong financial position and positive financial indicators that enable the company for continuous growth and enhance its position in the local and global markets,” the statement added.