SABIC to complete more petrochemical projects in 2014, reveals expansion plans

Saudi Basic Industries Corp. (SABIC), the Middle East’s largest company by market capitalization, is expected to complete 3 petrochemical projects in 2014, the company said in its annual report.

Total sales of its products, such as petrochemicals and steel, dropped to 53.9 million tons in 2013 from 54.1 million tons the previous year, the company added. Output in 2013 dropped to 68.5 million tons from 70.5 million tons in 2012, according to the report.

The petrochemical giant, which is 70 percent-owned by the government, said that the trial operations of its 47.3 percent-owned Ibn Rushd aromatics plant will start in the first half of 2014. The upgrade includes replacing natural gas feedstock to increase capacity.

After the upgrade, output capacity of polyethylene terephthalate (PET) to increase to 420,000 tons, production of purified terephthalic acid (PTA), which is used in making polyester, would rise to 700,000 tons from 350,000 tons.

A project to boost annual production capacity of the ethylene glycol to 525,000 tons from 450,000 tons will be completed in the first half of 2014.

The company added that the trial operations of acrylonitrile-butadiene-styrene (ABS) are expected to be launched by the end of 2014.

In addition, a project by SABIC’s Saudi Methacrylate Co. (SAMAC) to produce 260,00 tons of polymathy  methacrylate (PMMA) and 40,000 tons of Methyl Methacrylate (MMA) is likely to start trail operations in the first quarter of 2017.

Business of Sabic Innovative Plastic is expected to expand more in 2014, as the company focuses on providing innovative plastic materials used in manufacturing tablet computers and smart phones.