Logo Methanol Chemicals Co. (Chemanol)
Methanol Chemicals Co. (Chemanol) signed today, Feb. 5, a joint venture (JV) agreement with Global Company for Downstream Industries (GDI) to establish a national firm to produce specialty chemicals.
This includes the production of Methyl Diethanolamine, Choline Chloride Dimethyl Disulfide, Dimethyl Sulfate, Chlorine Derivatives, Poly Alpha Olefins and Aromatic Solvents, according to a statement to Tadawul.
Chemanol will own a 60% stake in the new company, while GDI will own the remaining 40%. The new JV will be based in Jubail Industrial City.
Through the JV agreement, Chemanol aims to become one of the largest producers of specialty petrochemicals in the region. This is given that all target products will be the first of their kind in the region.
Such products will be used in many vital and strategic industries such as oil and gas, pharmaceuticals, fertilizers, construction materials, fuel refinery, extraction of environmental harmful gases, carbon capture and storage technologies, recycling catalysts and paint manufacturing.
The company also said that the related financial impact will be determined later upon completion of all studies of new projects as well as the relevant agreements. It added that any updates or developments in this regard will be announced in due time.
On Feb. 11, 2022, Chemanol signed a non-binding memorandum of understanding (MoU) with GDI to explore cooperation opportunities between the two parties in field of petrochemical products, according to Argaam’s data.
In October 2022, Chemanol and GDI had inked heads of agreement for a strategic partnership to produce specialty chemicals.
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