November 19, 2006 Sipchem
Sipchem Launches its Olefins & Derivatives Complex
Petrochemical Company (Sipchem) has announced the award of the
Project Management Contract for its massive Polyoelfins complex
to Worley Parsons, Houston, USA and the Financial Advisory role
to HSBC. The massive, fully integrated olefins & derivatives
complex will consist of a cracker unit that will produce ~1.3 million
metric tons per annum (mtpa) of ethylene and propylene. These basic olefins will be used
in the production of ~800 thousand mtpa of polymers such as high density
polyethylene (HDPE), low density polyethylene (LDPE),
polypropylene (PP), and ethylene vinyl acetate (EVA). The project will complete the
products integration to further down stream added-value
performance products. Sipchem and its potential partners in this
project who signed the feedstock allocation letter with Saudi
Aramco: Mitsui of Japan, DuPont of USA, and Lucite of UK are
working on the final agreements of the projects which are
expected to be signed early next year, while start-up of projects
will commence in 2011. The total production of the
complex will amount to 3 million mtpa of 18 different products.
The project will fulfill obligations scheduled and agreed with
the Ministry of Petroleum and Minerals.
According to HE Mr. Abdulaziz Al-Zamil, Chairman of Sipchem, in line with Sipchem’s strategy to create new investment opportunities that stimulate economic and social development, the company continuously explores the prospects of phase-wise growth and expansion. Such projects add value to the abundant natural resources of the Kingdom, and create additional jobs for the growing number of Saudi youth. As per Mr. Al-Zamil, the entire complex, estimated to cost more than US$ 7 billion, will consist of 20 world scale plants and will employ more than 3,000 personnel.
Mr. Ahmad Al-Ohali, Executive President of Sipchem added that Sipchem plans to establish a joint stock company to execute this giant project in line with directives of relevant departments in the Ministry of Petroleum and Minerals to engage maximum number of Saudi citizens in these projects.
As Project Management Contractor, Worley Parsons will undertake the overall management of the project and detailed feasibility as well as other design work.
Ever since its inception in late 1999, Sipchem has been making phenomenal progress in every aspect of its business. The Phase-I of its development witnessed a successful completion and operation of two world scale methanol and butanediol plants that are currently producing at their maximum capacity.
As part of Phase-II of development, construction of acetic acid, vinyl acetate monomer, and carbon monoxide plants has already started in the second half of 2006. These plants will start production late 2008 with a total capacity of 1.15 million mtpa.
With the launch of the ambitious the phase-III olefins & derivatives complex, Sipchem aims to be one of the largest private, fully integrated petrochemical complexes in the Middle East.
Sipchem, with a current total capital of SR 1.5 billion, actively invests in petrochemical, chemical and hydrocarbon industries, both basic and intermediate. The third quarter of this year had witnessed a major landmark in the history of Sipchem when the company went public and listed in Saudi Stock market.
2007/10/22 Chemical Week
Ineos to join Sipchem olefins venture in Saudi Arabia.
Ineos is reportedly negotiating with Saudi International Petrochemical Co (Sipchem) to join in the latter's planned $8 bn petrochemical complex that would feature an advanced olefins plant at Al Jubail, Saudi Arabia.
Ineos may take the place of Hanwha Chemical, whose chairman was placed in prison in Korea for assault in early 2007. The olefins venture is slated to be brought online in 2011. A 200,000 tonne/y acrylonitrile facility is included in the third phase of the project. The Sipchem venture will have capacity of 1 M tonnes/y of ethylene and 215,000 tonnes/y of propylene.
An earlier reported Ineos olefins jv in Al Jubail, called Ineos-Delta, is expected to be dropped. No feedstock allocation may likely be secured since Ineos-Delta has failed to meet the country's industrial investment regulations. Sipchem is also discussing a jv with Lucite for a 250,000 tonne/y methyl methacrylate plant in Al Jubail.
酢酸計画 Sipchem Signed Joint Venture Agreement for Carbon Monoxide Project
Sipchem and Eastman Sign Definitive Agreements for Acetyls Technology
Sipchem and DuPont Sign Final Agreements for VAM Technology
Brings Suit Against Saudi Arabian Acetyls Company
（Sipchem denies alleged claims in a lawsuit ）
September 06, 2006
Sipchem to Commence
Execution of Acetyls Complex Project
The Saudi International Petrochemical Company (Sipchem) announced that it had commenced construction works for building the Acetyls Complex, which consists of three plants: the Acetic Acid plant (460 thousand tons per annum), the Vinyl Acetate Monomer plant (300 thousand tons per annum) and the Carbon Monoxide plant (345 thousand tons per annum) in addition to the utilities and offsite facilities at King Fahad Industrial Seaport in Jubail. This complex will be located at Sipchem`s site in the industrial city of Jubail. According to the stated plan of the project, this complex will start commercial operation in early 2009. Being the first of its type in the Middle East region, this complex constitutes a great achievement for Sipchem and its affiliates and its completion will be in line with Sipchem`s vision and stated objectives of investment in value-added petrochemical projects that would realize optimal returns for the shareholders. This SR 4-billion project represents the second phase of Sipchem`s projects.
Fluor Canada will be in charge of building the Acetic Acid plant and the Vinyl Acetate Monomer plant, while Lurgi AG (Germany) / AirLiquide JV (France) will be in charge of building the Carbon Monoxide project.
The Acetic Acid and the Vinyl Acetate Monomer projects will be jointly owned by the Saudi International Petrochemical Company (Sipchem) and Helm Arabia GMBH (Germany), whereby the two partners will be in charge of marketing the Acetic Acid and Vinyl Acetate Monomer products in the global markets.
The ownership of the Carbon Monoxide project will be shared by the Saudi International Petrochemical Company (Sipchem) and the National Power Company (Saudi Arabia).
In this regard, Mr. Ahmed Al-Ohali, Sipchem President remarked that this project would create over 500 direct job openings. Mr. Ohali added that a few months ago Sipchem had recruited more than 100 young Saudi high school graduates who are now receiving training at specialized pre-service training centers and will join the projects` working team after graduation. Mr. Ohali also added that products of the new complex would open up a wide scope for various other processing industries in the Kingdom.
The Saudi International Petrochemical Company (Sipchem) is a Saudi joint stock company established in late 1999. Sipchem currently operates a Methanol plant with an annual production capacity of one (1) million tons and a Butanediol plant with a production capacity of 75 thousand tons per annum. It is to be noted at this point that on Saturday 09 September 2006, Sipchem will be offering 30% of its shares to the public.
October 16, 2005
Sipchem Signed Joint Venture Agreement for Carbon Monoxide Project
Petrochemical Company (Sipchem) and National Power Company (NPC)
jointly announced the signing of a Joint Venture Agreement
establishing a 265,000 tons per year Carbon Monoxide project in
the Sipchem Acetyls Complex in Al-Jubail Industrial City. Carbon
Monoxide is a main feedstock for the Acetic Acid Project. By
signing this agreement with NPC, Sipchem has completed all the
Joint Venture Agreements for its Acetyls complex.
Sipchem announced earlier that it has signed Technology Agreements for Acetic Acid and VAM with Eastman Chemicals and DuPont, respectively. Sipchem also announced earlier the signing of Joint Venture Agreements and Marketing and Off-take agreements with Helm Arabia and Helm AG for the production and marketing of Acetic Acid and VAM.
The three Acetyls Projects are currently in the bidding stage for engineering and construction. It is expected to have the Acetyls complex operational in 2008.
The Acetyls complex, the first of its kind in Middle East, represents the 2nd phase of the company’s plan to create additional growth opportunities for Sipchem. The company is committed to continue producing high added value products which will increase the benefits of shareholders.
Sipchem is a Saudi joint stock company founded in 1999 with current paid in capital of SR 1,500 Million (US$400) million. Its shareholders comprise leading corporate organizations and investors in the Gulf Cooperation Council region. Sipchem currently operates a 1.0 million tons per year methanol plant, and has just started up a 75,000 tons per year BDO plant. Sipchem recently mandated National Commercial Bank (NCB) as a financial advisor and main underwriter to mange the company IPO which is planned for the first quarter of 2006
NPC is a closed joint stock company established in 2001 with paid in capital of SR200 Million ($53.3 Million) and owned by Al-Zamil and Al-Saif groups. The company invests in various Power production and distribution Projects.
May 07, 2005
Sipchem and Eastman Sign Definitive Agreements for Acetyls Technology
Saudi International Petrochemical Company (Sipchem) and Eastman Chemical Company (NYSE: EMN) today jointly announced they have signed the definitive agreements for Eastman to license its proprietary acetyl co-production technology to Sipchem. The licensing agreement is part of Sipchem’s plan to establish a world-scale acetyls complex in the Kingdom of Saudi Arabia through expansion of its petrochemical complex in Jubail Industrial City. The acetyl complex is expected to start-up in 2008. Terms of the agreements were not disclosed.
Eastman’s acetyl co-production technology will allow for production of acetic acid and acetic anhydride at a cumulative capacity of 460,000 tons per year. In addition to the technology license, Eastman will provide technical support and market all acetic anhydride produced from the facility.
According to Ahmed A. Al-Ohali, president of Sipchem, “The acetyl complex represents our planned Phase II project to provide additional growth opportunities for Sipchem and continuing success on our journey to produce value-added products and superior returns for our shareholders. Combined with the natural gas feedstock from Saudi Aramco, and methanol from Sipchem`s affiliate International Methanol Company located at the same site, we have planned a world-class complex in terms of technology, partners and value-creating potential." Sipchem had previously announced acquiring licensing rights from DuPont for vinyl acetate monomer.
Ron Lindsay, vice president and general manager of Eastman’s performance chemicals and intermediates business, said, “This agreement leverages the proprietary technology and know-how of Eastman and combines those with Sipchem`s strengths within Saudi Arabia to provide a win-win opportunity for both parties. This second source of acetyls for Eastman will allow us to reliably meet the long-term, growing needs of our global acetic anhydride customers, particularly within the Asia Pacific region.”
Sipchem is a Saudi joint stock company founded in 1999 with current paid in capital of US$173 million with participation from leading corporate organizations and investors in the Gulf Cooperation Council region. Sipchem currently operates a 1.0 million tpy methanol plant, and is constructing a 75,000 tpy butanediol plant, scheduled for start-up in December 2005.
Eastman Chemical Company (NYSE:EMN) manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products; is the world’s largest producer of PET polymers for packaging; and is a major supplier of cellulose acetate fibers. Eastman is leveraging its heritage of innovation and strength in polyester, acetyl and organic chemistry technologies to drive growth and meet increasing demand in four select markets: building and construction, packaging, health, and electronics. Founded in 1920 and headquartered in Kingsport, Tenn., Eastman is a FORTUNE 500 company with 2004 sales of $6.6 billion and approximately 12,000 employees.
August 09, 2004
Sipchem and DuPont Sign Final Agreements for VAM Technology
Petrochemical Company (Sipchem) has signed Definitive Agreements
with DuPont to license DuPont technology for a new 300,000
tons/yr. vinyl acetate monomer (VAM) manufacturing plant to be
located in Al- Jubail Industrial City, Kingdom of Saudi Arabia.
DuPont will provide its VAM technology under license and provide
technical assistance for the Sipchem VAM facility.
The planned VAM facility will be integrated into other petrochemical facilities currently planned for the site. Sipchem, a Saudi joint stock company, is capitalized at US$ 173 million (SR 650 million). Sipchem plans to produce and market VAM, maleic anhydride, butanediol, methanol and acetic acid from the new world-class manufacturing site facilities.
H.E. engineer Abdulaziz A. Al-Zamil, chairman of Sipchem said "The acetyl complex will provide further growth opportunities for Sipchem representing our vision for developing investments in the petrochemical industry to produce value-added products benefiting from the support of the Saudi Government and the available resources of the region".
"DuPont is pleased to have its VAM technology and expertise chosen for a project of this scale," said Craig Binetti, vice president and general manager ? DuPont and president of DuPont Packaging and Industrial Polymers. "Licensing our technology to Sipchem demonstrates our commitment to technology investment into global cost-advantaged regions. It also allows DuPont strategic, sustainable development in key regions of the global economy. Our relationship with Sipchem is a model for future growth."
Ahmed A. Al-Ohali, president of Sipchem says, “Our agreement with Dupont for the supply of the VAM technology conclude our efforts in securing sound know-how for the acetyls complex. Associating with carefully selected technology leaders is an important factor for the success of Sipchem. Our license agreement with DuPont and the earlier announced license agreement with Eastman Chemical Company for the acetic acid will enable Sipchem to have a good start in entering the acetyls business. Competitive feedstock and proximity to key markets are other factors for our success".
Sipchem is a Saudi joint stock company with participation from leading corporate organizations and investors in the Gulf Cooperation Council region. In its first phase development strategy, Sipchem is constructing a 1.0 million tpy methanol plant, scheduled to be operational in January 2005 and a 75,000 tpy Butanediol plant, scheduled for start-up in December 2005. In addition to the acetyls complex which is expected to come on stream in 2008, the company is reviewing plans for building other important petrochemical plants.
DuPont is a science company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and
Sipchem shelves plans of 1.3 mln tpa cracker project at Al-Jubail
Major challenges on costs, schedule, availability of qualified contractors and financing faced by Saudi International Petrochemical Co (Sipchem) has forced the company to abandoned plans for a 1.3 mln tpa cracker project at Al-Jubail, Saudi Arabia. Besides the cracker, Sipchem has also dropped plans for low-density polyethylene (LDPE), high density PE (HDPE) and polypropylene (PP) plants that were part of the original project configuration.
Sipchem, which has received gas allocation for its cracker project, will focus on differentiated products which include ethylene vinyl acetate (EVA), acrylonitrile (ACN), methyl methacrylate (MMA), polymethyl methacrylate (PMMA), polyacetals and polyvinyl acetate (PVA), sodium cyanide and carbon fibre.
23 June 2009
Sipchem sells 11% of
shares in 2 affiliates
The Saudi International Petrochemical Company (Sipchem)Saudi International Petrochemical Company (Sipchem) yesterday announced the completion of the sale of 11 percent of shares in two of its affiliates (International Acetyl Company and International Vinyl Acetate Company) to the Kuwait-based Ikarus Petroleum Industries Company. The shares were valued at SR240 million.
According to a company statement, Sipchem will maintain ownership of 76 percent of shares in both the companies. Sipchem had previously announced the selection of Ikarus as its new partner in both companies with an intended share of 15 percent. However, the two parties agreed at later stage to reduce this percentage to 11 percent. As a result of this deal, Sipchem will realize a profit of SR55 million which will be reflected in the financial statements of the second quarter of this year.
The International Acetyl Company and International Vinyl Acetate Company are limited liability companies and are established in the Jubail Industrial City with a total paid-in capital of SR1.68 billion.
The two companies will produce 460, 000 metric tons of acetic acid, acetic anhydride and 330, 000 metric tons of vinyl acetate monomers. Both companies are expected to start production in the third quarter of this year.
Established in 1999, Sipchem actively develops and invests in petrochemical and chemical industries, both basic and intermediate to produce chemicals used to manufacture a multitude of products that improve the lives of people worldwide.
Through its affiliates, International Methanol Company (IMC) and International Diol Company, Sipchem currently produces over one million mtpa of methanol and 75,000 mtpa of butanediol.
IAC is a limited liability company registered in January, 2006, owned 87% by Sipchem, 10% by Helm Arabia and 3% by Ministry of Endowmentsイスラム省. IAC is intended to build, own and operate the Acetic Acid (AA) plant. Helm Arabia is a special purpose company established in Hamburg, Germany between Helm AG of Germany, a leading multinational producer and distributor of petrochemical products and Thales International Offsites, a subsidiary of Thales Company of France, a leading international electronics and systems group, serving government and business customers worldwide.
The plant is designed to produce up to 460 thousand mtpa of acetic acid and up to 50 thousand mtpa acetic anhydride, that will start commercial operation in early 2009.
The feedstock, namely methanol, carbon monoxide and hydrogen will be provided internally by other Sipchem affiliates, viz. International Methanol Company (IMC) and Industrial Gases Company (IGC), thus ensuring an uninterrupted supply of feedstock.
IVC is a limited liability company registered in January, 2006, owned 87% by Sipchem , 10% by Helm Arabia and 3% by Ministry of Endowmens. IVC is intended to build, own and operate the Vinyl Acetate Monomer (VAM) plant. Helm Arabia is a special purpose company established in Hamburg, Germany between Helm AG of Germany, a leading multinational producer and distributor of petrochemical products and Thales International Offsites, a subsidiary of Thales Company of France, a leading international electronics and systems group, serving government and business customers worldwide.
The plant is designed to produce up to 330 thousand mtpa of VAM, which will start commercial operation in early 2009.
The feedstock, Acetic Acid, will be provided internally by other Sipchem affiliates, viz. International Acetyl Company (IAC) thus ensuring an uninterrupted supply of feedstock.
12 Jul 2009
Sipchem signs $1bn JV
with Korea's Hanwha
Saudi International Petrochemical Co (Sipchem) said it had agreed to form a joint venture with South Korea's Hanwha Chemical Corp to build polymer plants in Saudi Arabia.
Sipchem said it would hold a 75 percent stake in the joint venture, and Hanwha would hold 25 percent.
The plants, which will cost 4 billion riyals ($1.07 billion), will produce 200,000 tonnes of ethylene-vinyl acetates and 125,000 tonnes of poly-vinyl per year, Sipchem said in a statement posted on the Saudi bourse's website on Sunday.
The products are used in the manufacture of sports shoes, clothing and wood.
'The raw material will be provided by (Saudi state oil firm) Aramco and Saudi Basic Industries Corp (Sabic) some of Sipchem's affiliates,' Sipchem said.
The plants were expected to start production towards the end of 2013, Sipchem said.
Sipchem currently operates two plants that produce methanol and butenediol. It expects to start within the next two months production at three other plants that produce carbon monoxide, monovinyl acetate and acetic acid, it added.
The joint-venture with Hanwha will bring the value of Sipchem's overall investments to 13 billion riyals by the end of 2013, it added.
July 6, 2010
Sipchem Launches Two Jubail Chemical Plants
Petrochemicals Company (Sipchem) has recently begun production at
two out of three new chemical plants at its Jubail Industrial
City production complex.
The new plants include a 345,000 ton per year (t/y) carbon monoxide plant and a 450,000 t/y acetic acid plant. A third 33,000 t/y vinyl acetate monomer (VAM) plant will begin production in July 2010.
U.S. company Fluor Corporation built the acetic acid and VAM units under contracts awarded in 2005, and a joint venture of Germany’s Lurgi and France’s Air Liquide built the carbon monoxide plant.
U.S. companies Eastman Chemical and DuPont supplied the technology for the acetic acid and VAM production units, respectively.
Aug 4, 2010 Reuters
Saudi's Sipchem, Rhodia team up in ethyl acetate
* Sipchem says to build $107 mln ethyl acetate plant
* French Rhodia to provide technology, ethanol feedstock
* Sipchem to fully own the plant, which will start in 2013
French chemical group Rhodia will help Saudi International Petrochemical Co 2310.SE (Sipchem) set up the first ethyl acetate plant in the region to rival major commodity producers such as BP.
The plant, wholly-owned by Sipchem, will start in 2013 and will have a 100,000-tonne annual production capacity, Sipchem said in a statement posted on its website on Wednesday.
Rhodia will provide the plant with ethanol feedstock and technology and will also market the product, Sipchem said.
ethyl acetate （酢酸エチル）製法
Sipchem, which already
produces the other acetic acid feedstock needed to make ethyl
acetate, will spend 400 million riyals ($107 million) to build
Rhodia's agreement with Sipchem is the "first step to a greater cooperation with Sipchem and other partners in the region", the statement quoted Vincent Kamel, a senior executive at the French company, as saying.
An undisclosed share of the cost will come from financing sources, which Sipchem did not specify, and the remainder from its own resources.
"The plant will be designed as a swing facility to produce butyl acetate as well. The ethyl acetate plant is expected to be commissioned during 2013," Sipchem said.
"It will be the first time ethyl and butyl acetates are produced in the region. It is expected that the ethyl acetate plant caters to domestic needs and demand from abroad."
Ethyl acetate is mainly used as a solvent and diluent. Coffee beans for instance are decaffeinated with this product, which is also used in perfumes. Butyl acetate is another type of solvent used mainly to give fruit flavours to products such as ice cream, cheeses and candy.
Saudi Arabia: Sipchem begins work on phase III projects
Saudi International Petrochemical Company (Sipchem) has started construction work on two new plants being built under its Phase III expansion program.
Turnkey contracts to build the plants in Jubail Industrial City had been announced earlier.
The two Sipchem plants will be the first of their kind in the region, according to officials.
The first plant produces ethylene vinyl acetate (EVA) and low density polyethylene (LDPE) and the second facility will make ethyl acetate and butyl acetate.
The production capacity of the vinyl acetate plant will be 200,000 tons per annum.
It will be operated by the International Polymers Company Limited, an affiliate of Sipchem, founded in 2009.
Sipchem and Hanwha Chemical of South Korea have 75 percent and 25 percent stakes in the venture respectively. The total cost of the project is estimated at around SR3 billion.
同社はエチレン酢ビの生産のため、ExxonMobil の高圧法LDPE技術を導入、本事業を韓国のHanwha Chemical とのJV（Sipchem 75%、Hanwha 25%）とすることで合意したと発表している。
The project's main contractor, Korean company
GS Engineering & Construction Co., started construction work at the site last
The plant is scheduled to start operations during the second quarter of 2013.
Sipchem announced a technology license agreement with ExxonMobil in May 2009 for this plant.
Both Sipchem and Hanwha will be in charge of global marketing operations for these products.
EVA is used as a feedstock in the production of heat soluble adhesives, resin products and high-quality sports bandages.
LDPE is used as a feedstock in the production of various types of containers, bottles and medical detergents. The ethyl acetate and butyl acetate plant will have a production capacity of 100,000 tons per annum.
The main Korean contractor, E Tech Engineering and Construction Co., has already started construction work at the site.
This plant is expected to start production in the first quarter of 2013.
The total cost of the project is estimated at around SR350 million.
The ethyl acetate plant will cater to domestic and global markets. Its products will be used as a solvent in the manufacture of inks and industrial fluids and granules. The project will be wholly owned by Sipchem.
Abdulrahman Al-Saif, president, projects and services, pointed out that these plants are being built within the framework of Sipchem's strategic expansion plan.
He said the company had obtained the best technical and financial proposals for the implementation of these projects. He said such products will open up many investment opportunities for Sipchem in advanced industries.
He said the company is in the final stages of securing the necessary funding for these projects.
April 26, 2011 Sipchem
Sipchem & Hanwha Chemical Sign Joint Venture Agreement for Building a Polymers Compounding Plant
Saudi International Petrochemical Company (Sipchem) announced today 26 April 2011 that it has signed a joint venture agreement with Hanwha Chemical Corporation to build Polymers Compounding plant to produce special resin grades to be used to manufacture Wire and Cable products. The plant will be built at Sipchem site in Jubail Industrial City, Kingdom of Saudi Arabia with an estimated cost of around SR 225 million (US$ 60 million) and expected to start production during the second quarter of the year 2013. This plant comes as a part of Sipchem’s third phase expansion program.
The new Wire & Cable Polymers Compounding Company will be owned 50% by Sipchem and 50% by Hanwha Chemical. The products will be marketed by the new company in the Middle East and Europe. The major feedstock for the plant, Low Density Polyethylene (LDPE) and Ethylene Vinyl Acetate (EVA), will be sourced from the International Polymers Co. one of Sipchem affiliates. The products will be used to produce power cables insulation materials which have a wide usage in the region. The new project will be financed by the partners and other financial institutions which have not yet been determined.
2011/12/14 Arab News
Sipchem acquires Aectra SA
Saudi International Petrochemical Co. (Sipchem) Wednesday announced that its affiliate, Sipchem Marketing & Services Co. (SMSC), has acquired Aectra SA, a Swiss petrochemical trading and marketing company. Sipchem CEO Ahmad Al-Ohali and Aectra CEO Rene Fresco concluded the acquisition deal at the Atlantis hotel in Dubai on Wednesday.
Welcoming Aectra SA to the Eastern Province-based Sipchem family, Al-Ohali stressed that the acquisition was an important milestone for Sipchem. “Aectra SA gives Sipchem immediate access to experienced and proven marketing, logistics and trading expertise in the key European market,” he said.
“Since Sipchem’s manufacturing excellence and high-quality products are perfectly matched by Aectra SA’s marketing, logistics and trading expertise, the two companies will deliver real value to their customers and will provide the Sipchem family with a powerful platform for future growth,” Al-Ohali said.
Fresco described Aectra SA and Sipchem “a winning combination” and said that all members of the Aectra SA team were excited about working with Sipchem with a view to expanding the customer base and providing excellent service to all customers, big and small, throughout Europe.
Established in 1995, Aectra SA is located in Lutry, Switzerland. Fresco, its CEO, has nearly 30 years’ experience in European trading and logistics.
Aectra SA has an established network of agents and customers throughout Europe, and enjoys good professional relationships with major producers. Its employees have proven experience in European logistics.
Established in December 1999, Sipchem actively develops and invests in petrochemical and chemical industries, both basic and intermediate products used to manufacture a multitude of end-products. Through its five operating affiliates, Sipchem currently produces about 2.2 million of chemicals.
November 14, 2012 Sipchem
Sipchem Announces the Groundbreaking of EVA Films Project in Hail City
Saudi International Petrochemical Company (Sipchem) announces the groundbreaking of its Ethyl Vinyl Acetate (EVA) films project in Hail Industrial City on Wednesday 14/11/2012 under the patronage of His Royal Highness Prince Saud bin Abdulmohsen bin Abdulaziz Al-Saud, Governor of Hail, Chairman of the High Commission for Development of Hail Region.
The project is built with a total investment of about SR 120 million on an area of 40,000 m2 with annual capacity of 4,000 metric tons per annum. The project is 100% owned by Sipchem Chemicals Company (SCC), an affiliate of Sipchem and its product will be marketed by Sipchems affiliate, Sipchem Marketing and Services Company (SMSC). The project will be financed by the company and other local financers. It is worth mentioning that EVA films are used in the manufacturing of solar cell panels which are used in the production of electricity. The project is expected to be operational by the 3rd quarter of 2013.
Sipchem considers the establishment of this project in Hail as an inspiring motive in the creation of investment opportunities by establishing new projects using the product in addition to the creation of various employment opportunities for the people of Hail.
Phase 1 of Ha'il Industrial City was established in 1423 (2003) on an area of 800 thousand square meters. Raw material used for food industries and metal industries such as gypsum, boxite and magnisium is available in the surrounding area. Expressway and railway network which links the area to other regions is also available.
Saudi International Petrochemichal Co. : Sipchem Opens Singapore Office
Sipchem Marketing Company (an affiliate of
the Saudi International Petrochemical Company (Sipchem) took another important
step forward today to strengthen its global petrochemical marketing and service
delivery when it formally opened its office in Singapore.
The opening ceremony was attended by Sipchem's Chairman, H.E. Abdulaziz Al-Zamil, Mr. Ahmad Al-Ohali, Chairman of Sipchem Marketing Company (SMC), and other company officials.
In his opening address Sipchem's Chairman, H.E Abdulaziz Al-Zamil remarked that both Sipchem and SMC were particularly pleased to be able to strengthen their relationship with Singapore through the opening of an office. "Singapore is a well-established and important logistics and trading hub for the petrochemical industry and an ideal gateway for delivering excellent service to customers throughout Asia", said H.E Abdulaziz Al-Zamil
Mr. Ahmad Al-Ohali speaking on behalf of SMC emphasized that the opening of the Singapore office demonstrates SMC's commitment to delivering world class services to its customers throughout Asia. "The opening of an office in Singapore signals a clean break from our past practice of servicing customers' needs through off takers and distributors, and emphasizes the importance SMC places on its customers throughout Asia" said Mr. Al-Ohali. "The Sipchem Singapore office will initially sell and market all Sipchem's products directly to enhance transparency and customer relations versus past reliance on marketing by specialized marketing companies. This year, Sipchem is marketing globally all of its products from the Butanediol plant and it is also increasing its marketing volumes of Methanol. Our marketing expansion plans have been completed in anticipation of selling new products that will come on steam later during this year" Al-Ohali added.
SMC, the marketing arm of the Sipchem group of companies was formed in 2007 with the express purpose of delivering world class services and petrochemical products internationally. Since its formation SMC has successfully expanded its operations in its key markets in the Middle East, Europe and Asia. In 2011 the SMC Board of Directors recognized that the sustainable delivery of world class services and products requires that SMC have a direct relationship and establish a tangible presence with its customers. To this end SMC established an office in Switzerland to provide marketing and logistic services to its customers in Europe. The Swiss operation has enabled SMC not only to service the needs of its customers but also provided a solid base for growth throughout Europe. The opening of the Singapore office positions SMC close to its customers throughout Asia, gives SMC access to an outstanding infrastructure and is the ideal platform for SMC to further expand its business throughout the region.
SMC focuses primarily on the marketing and sale of Methanol, BDO, THF, AA and VAM. During 2013 its product portfolio will expand to include EVA, LDPE, EA and BA, with further products to be introduced in 2014.
October 3, 2018
Saudi Arabia's Sipchem and Sahara plan 8.25bn
riyal petchem merger
Saudi International Petrochemical Company or Sipchem signed a non-binding agreement to buy Sahara Petrochemicals Company in a deal valued at 8.25 billion riyals (Dh8.1bn) four years after merger talks stalled.
Sipchem will make an offer to buy all of Sahara's shares and each Sahara shareholder will receive 0.8356 new Sipchem shares, the companies said on Wednesday in statements to the Saudi stock exchange. Sipchem and Sahara are working to enter a binding agreement by February 28.
The merger would help in "increasing scale and resilience in the evolving petrochemicals sector, both in the kingdom and internationally," the companies said.
The agreement comes after the two companies called off talks for a planned tie-up in 2014, citing an inadequate regulatory framework. The Capital Market Authority, Saudi Arabia's markets regulator, has since introduced laws to facilitate mergers and acquisitions activity. The proposed merger comes as consolidation gains momentum in Saudi Arabia's corporate sector, most recently with Saudi Aramco expressing interest in buying a stake in petrochemical maker Sabic.
The deal between Sipchem and Sahara is valued at 8.25bn riyals as per Tuesday's closing share price.
A potential deal would benefit the companies with cost synergies, stronger product portfolio, better access to capital markets and a broader feedstock supply, according to the statements.
"The proposed transaction is expected to provide synergy potential, from both a revenue and cost perspective, which is expected to drive value for shareholders," the companies said.
Shares in Sipchem rose 0.7 per cent at the market close in Riyadh on Wednesday while Sahara shares rose 3.9 per cent.
Sipchem hired HSBC Saudi Arabia as its financial advisor and Khoshaim & Associates and Allen & Overy as its legal advisors.
Sahara appointed Morgan Stanley Saudi Arabia as its financial advisor and Abuhimed Alsheikh Alhagbani Law Firm and Clifford Chance as its legal advisor.
The proposed stake sale of Sabic, the region’s biggest chemicals manufacturer, to the world's top oil producing company Saudi Aramco is expected to set into motion more consolidation in the regional industry, according to analysts.
Petchems contributed to about $43.8bn (Dh161bn) to GCC economies in 2016 alone, according to the Gulf Petrochemicals and Chemicals Association, the sector's regional representative body.
Development of petchem projects has accelerated in the GCC over the past couple of years as national oil companies fine-tune plans to generate more value from their crude grades.