Saudi International Petrochemical Company (Sipchem) signed a joint venture agreement with German Company, 'Helm Arabia Gmbh & Co.' The deal hopes to set up projects in Jubail that would produce annually 460,000 tons of Acetic Acid and 300,000 tons of Vinyl Acetate Monomer (VAM). Sipchem's Chairman Abdulaziz A. Al-Zamil inked the agreement on behalf of his organization, while the chairman of Helm Arabia GmbH & Co., Dieter Schnabel signed the SR2.7 billion accord representing his company and French company, Thales. Helm Arabia also signed marketing and off take agreements for the long term off take of both Acetic Acid and VAM for sale and distribution outside the Middle East. Sipchem will market the products within the Middle East, according to a press statement published today. "By signing these agreements, Sipchem has taken a significant step toward its plan to establish a world-scale acetyl complex in the Kingdom," Al-Zamil said, adding that the project is expected to start in 2008.
