Ali Al-Turki, Chairman of Methanol Chemicals Co. (Chemanol)
Methanol Chemicals Co. (Chemanol) is currently implementing a methanol plant expansion project, which will increase energy efficiency by reducing consumption and improving plant performance and productivity by 40%, contributing to enhancing the company's results, according to Chairman Ali Al-Turki.
In a phone interview with Argaam, Al-Turki said that the company is establishing four new plants to produce specialized chemicals such as methyl diethanolamine, choline chloride, dimethyl disulfide, dimethyl sulfate, chlorine derivatives, polyalphaolefins, N-methyl pyrrolidone (NMP), and aromatic solvents, which will be the first of their kind in the region.
These materials, he explained, will be used in many vital and strategic industries, such as the oil and gas industry, pharmaceuticals, fertilizers, building materials, fuel inputs, flare gas recovery, gas processing, carbon capture and storage technology, and coating production, as demand for these products grows in local and regional markets.
Al-Turki added that most of these projects, which will be built in Jubail, will depend on the raw materials available at the existing Chemanol plants.
Chemanol’s Chairman went on to say that specialized chemicals are extremely important to the Kingdom's economy because many industries, including oil and gas, petrochemicals, pharmaceuticals, agrochemicals, and advanced materials used in a variety of fields, rely heavily on them due to their potential to increase revenues and create jobs.
In general, these materials play a pivotal role in many industries, contributing significantly to technological advancements, product innovation, and economic growth, Al-Turki said. This particular class of chemicals has unique qualities and properties that are essential for many industries.
“At Chemanol, we develop and enhance our applied research capabilities and skills as an integral part of our strategic growth plans,” he added.
He also stressed that the company aims through these new projects to increase and diversify its revenues, in addition to achieving the aspirations of its shareholders and contributing to advancing the national economy.
Such projects also represent the main pillar of the company's strategic plan for the next 10 years, which is based on acquisitions and entering into new partnerships with parties that own specialized materials or technologies.
Al-Turki also stated that the company is currently seeking to complete the procedures for the acquisition of two Saudi companies specializing in chemicals as part of its strategy for inorganic growth.
This acquisition also gives Chemanol new capabilities for change by adding specialized, multi-purpose chemical facilities with first-class research and development skills, as well as contributing to its goal of becoming the Kingdom’s best company in the field of specialty chemicals in a short time compared to its organic growth projects, he added.
Chemanol is looking forward to financing these projects, after gaining the confidence of the Ministry of Energy, from its own resources and obtaining loans from several parties, led by the Saudi Industrial Development Fund (SIDF), the main supporter of the company's projects, in addition to commercial banks with which Chemanol has good relations.
Al-Turki noted that Chemanol expects a great domestic and international demand for its new products due to the market need for these products and the development witnessed by the petrochemical industry sector worldwide, according to Al-Turki.
According to data compiled by Argaam, Chemanol recently announced the issuance of the Ministry of Energy’s approval to allocate the required feedstock for manufacturing specialty petrochemical products.
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