Saudi-based Jubail Chevron Phillips Co. petrochemical company said on Saturday it plans to export its first shipment next month. The firm, based in the eastern Saudi city of Jubail, will produce an annual 750,000 tons of styrene and 150,000 tons of polypropylene, Saudi Industrial Investment Group (SIIG) said in a statement posted Saturday on the bourse's website. SIIG holds a 50 percent in Jubail Chevron Phillips Co.. Chevron Phillips Chemical Company holds an unspecified stake in Jubail Chevron Phillips Co. which was built at a total cost of SR4.5 billion ($1.2 billion). The start of commercial operations has been delayed by at least six months on initial launch plans. Jubail Chevron Phillips Co. is the second joint venture between SIIG and Chevron Phillips Chemical Co. Saudi Arabia is among the world's top suppliers of petrochemical products, Manufacturers there benefit from access to cheap feedstock and proximity to major markets in India and China. Styrene, also known as vinyl benzene, is used to produce products such as synthetic rubber, fiberglass, insulation material and food containers. Polypropylene can be used in packaging, textiles, stationery and automotive components. SIIG doubled its capital this year to set up with Chevron Phillips another petrochemicals firm it called Petchem under a SR18 billion joint venture, half the capital of which will be offered in an initial public offering this year. Chevron Phillips will hold 35 percent of Petchem, SIIG has said. SIIG posted an 18 percent increase in net profit in the seven months to July 2008 despite the start-up costs of the Jubail Chevron Phillips Co., SIIG said in a separate statement on Saturday. Shares in SIIG closed up 3.25 percent at SR31.75 on Saturday, but they are 18.6 percent below their level since the start of the year, which is better than the overall bourse performance but below the petrochemicals industry index.
