Japan's Mitsubishi Rayon plans to set up a joint venture in Saudi Arabia with major local chemical producer Saudi Basic Industries Corp (Sabic) to produce material used for acrylic glass, a Japanese media reported. The factory is expected to begin operations in 2013. Acrylic glass is used in various consumer electronics and auto parts and demand for the high performance chemical is improving in some markets such as China. Mitsubishi Rayon is expected to take a majority stake in the joint venture with spending of more than 50 billion yen on the project. The factory will boast an annual output capacity of 200,000 to 250,000 tonnes and become one of the largest for producing methyl methacrylates (MMA). The launch of the new Middle Eastern plant is expected to increase Mitsubishi Rayon's MMA output capacity by 15-20 per cent. Mitsubishi Rayon Co. rose the most in seven weeks in Tokyo trading after the Nikkei newspaper reported the Japanese synthetic-fiber maker will form a venture in Saudi Arabia. Mitsubishi Rayon rose as much as 5.8 percent, the largest increase since June 17, and traded 4.3 percent higher as of 9:49 a.m. on the Tokyo Stock Exchange. Sabic is expected to take a 10-20 per cent stake in Lucite International owned by Mitsubishi Rayon ahead of the establishment of the joint venture. Meanwhile, Saudi Ethylene and Polyethylene Company (SEPC) has successfully started up its world-scale low density polyethylene (LDPE) plant based on the Lupotech T process technology. This LyondellBasell joint venture, located in Al-Jubail, is estimated to have a capacity to produce 450,000 tpa. Initial capacity of 400,000 tons was exceeded in the first weeks of operation. In addition to the proven capacity increase, the plant's consumption of utilities has been significantly lower than calculated. Specific energy consumption is 10% less than predicted, which firmly establishes the facility as the most efficient tubular process plant in the world.
