MOSCOW (MRC) -- SABIC and the Korean petrochemical company, SK Global Chemical, signed a 50-50 joint venture agreement in Seoul, South Korea, for a total investment of USD595 million to manufacture a range of high-performance polyethylene products using SK’s cutting edge Nexlene solution technology, said SABIC in its press release.
The joint venture, which is located in Singapore, is expected to operate a series of manufacturing plants, the first of which was recently completed by SK Global Chemical at its complex in Ulsan, South Korea, with an expected annual capacity of 230,000 tons. The plants will produce metallocene linear low density polyethylene, polyolefin plastomers and polyolefin elastomers that will meet the growing needs of diverse industries such as advanced packaging, automotive, healthcare, footwear and electrical and lighting.
A second plant is planned for Saudi Arabia. Over time, production bases will be established worldwide.
The properties and characteristics offer a range of possibilities for the development of innovative product applications. The packaging industry can benefit from lighter versions of Nexlene (mLLDPE) to produce films to manufacture flexible food packaging and wrapping materials. They can also be used in pipes for greater variations as well as in consumer goods, such as roto-moulded articles.
Polyolefin elastomers find applications in a number of industries where elasticity is important including impact modifiers in the automotive industry, footwear in consumer markets and wire coatings in utilities and construction industries.
Polyolefin plastomers are specifically designed to provide excellent heat seal strength for a variety of packaging products to help provide inner sealing, adhesive and air/moisture barrier layers.
The joint venture marks the second instance in which SABIC is investing in manufacturing capability in the Far East after its successful partnership with the China Petrochemical Corporation (Sinopec).
SK Global Chemical is a pioneering petrochemical company in Korea, being the first in the country to build a naphtha cracking facility in 1972. Through continuous facility investment, R&D and technological improvement, the company has maintained its position as the leader of the petrochemical industry in Korea.
SABIC is a diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers and metals. It is the largest public company in Saudi Arabia. It is the largest company in the Middle East.
SABIC is currently the second largest global ethylene glycol producer and is expected to become number one after the introduction of these new projects. SABIC is the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene manufacturer. It is also the world's largest producer of mono-ethylene glycol, MTBE, granular urea, polyphenylene and polyether imide.