Advanced has expansion plans, is open to mergers: Chairman

Advanced Petrochemical Co. has various expansion plans and it is open to merger deals, Chairman, Khalifa Al Mulhem, told Argaam on the sidelines of the Gulf Petrochemicals and Chemicals Association (GPCA) currently being held in Dubai.

The company is studying the feasibility of copolymer projects with specialized companies to produce around 100,000 tons of polymer, which is used in the car industry. It is also planning to produce another medical detergent in coordination with a local firm.

The new polypropylene project will be 50% financed from the Saudi Industrial Development Fund (SIDF), 25% through commercial banks and the remaining 25% will be financed from the company’s own resources.

Polypropylene prices dropped in Q4 2019, Al Mulhem said, expecting more declines in Q1 2020, before they later reverse direction to their normal levels.

Feedstock prices’ fluctuation weighs on the company, which is also affected by the US-China trade war, Al Mulhem noted.