Advanced Petrochemical Co. said on Tuesday that Petrochemical Industries Co. (PIC), a fully-owned subsidiary of Kuwait Petroleum Corporation, will be admitted as a third partner in its South Korean joint venture, SK Advanced Co. Ltd.
In 2014, the Jubail-based Advanced, through its 95 percent owned subsidiary Advanced Global Investment Co. (AGIC) made an equity investment of 35 percent in a propane dehydrogenation (PDH) plant alongside SK Gas in South Korea for the production of propylene, a petrochemical feedstock used in plastics manufacturing.
PIC will acquire 25 percent equity and it was agreed that AGIC will sell five percent of its equity ownership in the joint venture (JV), according to the company’s statement to the Saudi bourse, Tadawul.
Accordingly, the new shareholding structure of the JV will be: 45 percent owned by SK Gas, 30 percent by AGIC and 25 percent by PIC.
Advanced said Tuesday that the financial gain from the sale of five percent shares by AGIC— amounting to approximately SAR 16 million—is expected to be booked in the first quarter of 2016, subject to completion of regulatory procedures.
Advanced said the strategic partnership with the state-owned Kuwait Petroleum Corporation through PIC will also improve the competitiveness and stability of SK Advanced PDH business as a significant percentage of the feedstock will be supplied by KPC on a regular long-term basis.
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