THE CHEMICALS INDUSTRY faces a difficult period with the combined strain of plunging demand and frozen credit markets taking their toll as the global economy continues to struggle. The world's third-largest petrochemical company, LyondellBasell, recently filed for bankruptcy, while many other chemical companies have closed factories, reduced their workforces and withdrawn from deals so they can stay afloat.

SAUDI BASIC INDUSTRIES Corporation (SABIC) and affiliates of ExxonMobil Chemical have signed a heads of agreement (HOA) and are finalising detailed studies for a new Elastomers project at their petrochemical joint ventures, Kemya and Yanpet. The agreement was signed by Mansour Al Kharboush, SABIC vicepresident, speciality products, and by Robert G. Hutchinson, vice-president chemicals, ExxonMobil Saudi Arabia Inc.