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Saudi Basic Industries Corporation (Sabic) will establish a 50-50 joint petrochemical venture with Mitsubishi Rayon with a capital of SAR 1.35 billion, expected to be operational in 2017.
The total cost of founding the company, to be named Saudi Company for Methacrylates, and building the project is SAR 4.5 billion, Sabic said in a filing on Tadawul.
The cost will be financed from the partners’ own resources and credit facilities.
Taiwan’s CTCI Corporation is executing the engineering and construction works, which started this week and will be delivered in early 2017, Sabic added.
Sabic and Mitsubishi Rayon had signed agreement in May 2011 to build and operate two plants at Jubail Industrial City, to produce methyl methacrylate monomer and polymethyl methacrylate with annual capacity of 250,000 and 40,000 tonnes respectively.
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