MOSCOW (MRC) -- Sabic said it signed an agreement with the Japan Saudi Arabia Methanol Company (JSMC) to raise its stake in renew the JV partnership in Saudi Methanol Company (Ar-Razi) for another 20 years, as per Pipeline Oil&Gas News.
JSMC will pay more than 5 billion Saudi riyals to Sabic for renewing the joint venture partnership, which Sabic will use, in part or whole, to finance refurbishment of Ar-Razi’s existing methanol plants or set up new ones, Sabic said in a statement.
Under the agreement, which was approved by regulatory bodies, Sabic will raise its stake in Ar-Razi to 75%, reducing JSMC’s shareholding in Ar-Razi to 25 percent. Sabic will also become an equal co-owner with JSMC.
"Ar-Razi is the first joint venture in Sabic's history and one of the most successful partnerships that the company has had over 40 years," said Yousef Al-Benyan, Sabic vice chairman and CEO.
"Renewing the partnership for more 20 years is proof of its success and contribution to the Saudi-Japan strategic cooperation, in line with Vision 2030," he added.
Ar-Razi was set up in 1979, as a 50/50 joint venture between Sabic and JSMC with the aim of developing, establishing, owning and operating a methanol complex.
As MRC informed before, in February 2018, in response to customer needs, Sabic announced projects in Asia and the Netherlands designed to increase global capacity for two of its high-performance engineering thermoplastic materials, Ultem and Noryl resins. The planned new production facility in Singapore is expected to go online in the first half of 2021. The company also plans to recommission operations at its Bergen op Zoom PPE resin plant in the Netherlands by the end of 2019 to produce polyphenylene ether (PPE), the base resin for its line of Noryl resins and oligomers.
Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.