Mohamed Al-Mady, Vice Chairman and CEO of Saudi Basic Industries Corporation (SABIC), announced yesterday that SABIC is a strategic partner in the formation of the Saudi Kayan Petrochemical Company. This follows the signing of partnership agreements with Kayan for the establishment of the public stock company. The new company's capital amounts to 12 billion Saudi Riyals. The new company will be located in Al-Jubail Industrial City with an annual production capacity exceeding 4 million metric tons of petrochemical and chemical products. 45 percent of the capital will be offered for public subscription at a nominal value of 10 Saudi Riyals per share. SABIC will hold a further 35 percent of the company's capital and Kayan will hold the remaining 20 percent. Al-Mady expects the new company will go on stream in 2009 and it will add some specialized chemicals to the Saudi marketplace that will be produced in Saudi Arabia for the first time. These products include aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene and polycarbonate. This is in addition to ethylene, propylene, polypropylene, ethylene glycol, butene-1 and other products which will provide wide opportunities for downstream industries. --MORE 1109 Local Time 0809 GMT
