Sadara Chemical, Bahrain’s Gulf Interchem ink MoU for recycling plant

Sadara Chemical Co. (Sadara) signed a non-binding memorandum of understanding (MoU) with Bahrain-based Gulf Interchem to set up a chemical by-product recycling plant in PlasChem Park, an industrial park between Sadara and the Royal Commission for Jubail and Yanbu (RCJY) located in Jubail Industrial City.

Under the deal, the Bahraini firm will build an integrated treatment plant to recover and convert valuable molecules from Sadara’s by-products into fine chemicals that can be used in the production of specialty chemicals, Sadara said in a statement on Tuesday.

The new facility will be the first of its kind serving the Jubail petrochemical industry in by-product recycling.

The Saudi chemical producer will benefit from the project, as it will recycle its low-value by-products streams, enhance export value and provide new job opportunities.

The plant will also reduce carbon dioxide emissions by approximately 50,000 tons per year and is expected to provide 50 highly specialized jobs, while supporting the Kingdom’s downstream manufacturing industries in the long term.

“This supply agreement with Gulf Interchem carries numerous advantages and benefits for Sadara, its partners and local and regional industries, as it not only allows us to responsibly utilize a portion of our by-products, but also localizes a by-products handling component crucial not only to Sadara, but to many of the chemicals players in PlasChem Park as well,” Mohammad Al-Azzaz, Director of Value Park, Sadara, said.

The company will continue to explore further opportunities for the other by-product streams that will be produced by the Sadara Chemical Complex.

Al-Azzaz added that many of the investors in PlasChem Park will conclude their planned project’ engineering activities by early 2018 with ground-breaking activities set to take place in the third quarter.

Gulf Interchem, which was established in 2012, is specialized in chemical waste recycling.