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The Saudi International Petrochemical Co. (Sipchem) is studying expansion projects in Saudi Arabia and worldwide, including a plant to produce methanol in the US, Chief Executive Officer Ahmad Al Ohali told Al Arabiya TV.
The company had announced plans to start a methanol production project depending on shale gas in the US, and its Chief Executive told Bloomberg in January it might seek a US-based partner.
The firm is also looking into intermediate manufacturing projects in Saudi Arabia, and seeks to extend the business of its subsidiary, Wahaj Co., into the military and industrial sectors, added Al Ohali.
Sipchem has not engaged in any expansion projects over the past three years, as it focused on consolidating financial position, and re-examined its applicable expansion strategy, whereby it had opened 11 plants in 15 years, he clarified.
The chief executive did not give a specific investment figure for the expansions in sight, and said "The budget will depend on the target project's nature, location and scale."
He assessed that oil prices, stabilizing at current levels, would be favorable for his business looking forward, and said: "Improved oil prices over the past year, beside other variables, did contribute to the stability of our prices and helped us deliver more products."
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