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Further to the announcement published on Tadawul's website on 03-04-2010 related to the agreement made with the US Celanese company to establish a polyacetal production facility for the construction of a 50,000 ton polyacetal (POM) production facility at the affiliate, National Methanol Co.
IBN SINA complex in Jubail Industrial City, Saudi Arabia with a capital cost estimated at USD 400 million. SABIC wishes to announce the awarded of the contract implementation of the project on Dragados Industrial S.A Spain on the evening of Tuesday, 9/7/2013 at a total cost of US 386,696,385 in a self-financing through partners and commercial loans.
It is scheduled to begin the engineering activities for the project on August 2013 as the project expected to be completed during the first quarter of the year 2016.
The delay of engineering activities is due to meet the economic feasibility studies and completion of certain agreements related to the project without any significant financial impact.
The trial operation of the project is expected to be during the second quarter of 2016 and for a period ranging between three to six months and the commercial operation will be in the fourth quarter of the same year.
The financial impact in the financial results will be calculated after the announcement of commercial operation.
The plant will receive methanol feedstock from IBN SINA. POM is an engineered performance chemical product specifically used in automotive industries as well as in mechanical and construction fields. It also has many other industrial applications.
IBN SINA, which was founded in 1981, is a leading producer of methanol and MTBE. SABIC owns 50 percent of IBN SINAs capital while Celanese and an affiliate of Duke Energy Corporation each hold a 25 percent interest in the venture.
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