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04-29-2011

Sabic: Partnership with Asahi and Mitsubishi

Saudi Basic Industries Corporation (Sabic), Asahi Kasei Chemicals Corporation and Mitsubishi Corporation signed a strategic Joint Venture Agreement to form a limited liability company, Saudi Japanese Acrylonitrile Company (Shrouq), in Saudi Arabia. Sabic will own 50 % of the venture and Asahi Kasei Chemicals and Mitsubishi will together own 50 %.

The company will build a plant for the manufacturing of Acrylonitrile (AN) and Sodium Cyanide (NaCN), with subsequent sales and distribution to be carried by the partners. The agreed plan is to establish world-scale plants with capacities of 200,000 metric tons annually of AN and 40,000 metric tons annually of NaCN at one of the Sabic affiliates’ sites in Jubail Industrial City, Saudi Arabia.

AN and NaCN are important chemicals for the downstream diversification into acrylonitrile butadiene styrene (ABS), carbon fiber, acrylic fiber, acrylamide and others which serve various industries such as automotive, construction, water treatment, oil recovery, personal care, consumer goods, pharmaceuticals, electronics, gold mining and many others.

The Asahi Kasei Group commented that the new capacity, joined with their other production in Japan and Korea, will make them the largest producer of AN in the world at some 1.4 million tons per year upon completion of the new plant in Saudi Arabia.

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