The National Industrialization Co. (Tasnee) and Sahara Petrochemical Co. agreed a US$1.4 billion financing deal with Saudi banks to support three joint ventures: Saudi Acrylic Acid Co., Saudi Acrylic Monomers Co. and Saudi Polyolefins Co.
"The agreement is signed for 16 years as the two will pay back the amount in half-yearly installments for providing finance required for their acrylic acid project in the petrochemical complex of the Jubail Industrial City," an official statement said.
Tasnee and Sahara have already signed agreements to start engineering, procurement, and early construction works at their US$1.07 billion acrylic acid project.
The deals were signed with the consortium of Germany's Linde and South Korea's Samsung.
The technology transfer and marketing contracts have already been signed with Rohm and Haas Co., a fully-owned unit of Dow Chemical Co., which owns 25 per cent of the project is expected to start operations in the first quarter of 2013, the statement said.
The project has a designed annual capacity of 145,000 MT of crude acrylic acid, 145,000 tonnes of butyl acrylate, and 85,000 tonnes of pure acrylic acid.
Tasnee has a 52.3 per cent stake in Saudi Acrylic Acid Co. while Sahara holds 43.16 percent of its shares. Tasnee and Sahara have 39.2 per cent and 32.37 stakes respectively in Saudi Acrylic Monomers Co. and Saudi Polyolefins Co.
The project, when completed and on stream by the third quarter of 2012, will produce 250,000 tonnes per annum (tpa) of concentric caustic soda and 300,000 tpa of di-ethylene.
