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Sipchem to start ethyl acetate, butyl acetate production by Q2 '13
Published in The Saudi Gazette on 11 - 01 - 2011

JEDDAH: Saudi International Petrochemical Co. (Sipchem) plans to start production at a new 100,000 mt/year ethyl acetate/butyl acetate swing plant at its complex in Jubail Industrial City during the second quarter of 2013, the company said. This plant comes as a part of Sipchem's growth in downstream products in full integration with current products portfolio.
Sipchem has signed a licensing agreement with France's Rhodia for use of its technology in this project, while South Korea's eTEC engineering & Construction will build the plant. The plant will be wholly owned by Sipchem.
Sipchem has awarded the engineering, design and construction (LSTK) to eTEC Saturday.
Ethyl acetate from the plant will be used in the inks industry, for industrial solvents, and as granules for surface coatings, Sipchem said. Acetic acid feedstock for the plant will be obtained from Sipchem's majority-owned 450,000 mt/year plant at the same complex, which was completed at the end of 2009.
The AA plant at Jubail is operated by International Acetyl Company, which is 87 percent owned by Sipchem, 10 percent held by Helm Arabia and the remaining 3 percent held by Saudi Arabia's Ministry of Endowments.
Sipchem has announced Aug. 4, 2010 the signing of a licensing agreement with the French company Rhodia for the use of its technology in this project.
The ethyl acetate plant is expected to satisfy all local needs in addition to meeting the demand of the international markets for EA and BA.
The Saudi International Petrochemical Company says its board has approved the issuing of an Islamic bond worth at least SR1.5 billion ($400 million).
Sipchem said earlier that the bond is slated to be issued in the first quarter of 2011.


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