MOSCOW (MRC) -- Advanced Petrochemical Company is pleased to announce the signing of long-term off-take agreements on January 29, 2015 for the sale of Polypropylene with Mitsubishi Corporation of Japan (150,000 metric ton per annum) and Domo Investment Group of Belgium (100,000 metric ton per annum), to be effective from January 1, 2019 for a period of ten years after the expiry of existing off-take agreements, said Mubasher.
The company also signed on the same date short-term off-take agreements with Mitsubishi Corporation and Domo Chemicals Asia Ltd. (subsidiary of Domo Investment Group) for the sale of additional 50,000 metric ton per annum of Polypropylene for each, to be effective from February 1, 2015 for a period of four years. Such additional Polypropylene will be produced from outsourced Propylene (intermediate product) purchased from a local supplier.
The signing of these off-take agreements will impact the financial results for these years based on prevailing market prices.
Advanced Chairman, Mr. Khalifa Al-Mulhem, commented that securing a long-term off-take commitment from these renowned and experienced off-takers will help to achieve the Company's long term strategic plans and will also improve the profitability of the Company due to improved marketing fee and better terms and conditions.
As MRC wrote before, Saudi Arabia's Advanced Petrochemical Company will raise the production capacity of its polypropylene plant in Jubail to more than 500,000 mt/year, from the current 450,000 mt/year, by mid-2105.
Advanced Petrochemical Company (before Advanced Polypropylene) is a Saudi Joint Stock Company, established in October 2005. The company was initially launched by National Polypropylene Limited, jointly owned by Mr. Khalifa Al Mulhim, the chief executive officer of Advanced, and Mr. Monther Laheeq, who negotiated all the main deals related to the project, either before or after the establishment of Advanced Petrochemical. Currently, National Polypropylene Limited controls 7.9% of Advanced Petrochemical. Advanced Petrochemical started the construction of its plants in May 2005. The company produces 455,000 tons per year of propylene and 450,000 tons per year of polypropylene from its production facility located in Jubail Industrial City, in the Eastern coast of the Kingdom of Saudi Arabia.
MRC