Sadara signs supply deal for PlasChem Park

Khalid Al-Luhaidan, Ziad Al-Labban, Hong Jungko, Abdullah Al-Amoudi at the agreement signing ceremony.
Updated 27 May 2016
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Sadara signs supply deal for PlasChem Park

JUBAIL: Sadara Chemical Company (Sadara) has entered into a supply agreement with Surfactants’ Detergent Company (SDC), a joint venture being developed by a Saudi/South Korean consortium which plans to build a chemical production facility in PlasChem Park, located in Jubail Industrial City II.
The Saudi/South Korean consortium comprises SFC Ltd, a Korean technology provider, and Saudi partners Ahmad K. Al-Amoudi Ltd. (AKA) and Maydan Industry for Industrial Developments & Investment Ltd. (Maydan Industry).
Under the agreement, Sadara will supply Ethylene Oxide (EO) and Propylene Oxide (PO) to SDC via pipeline. SDC will specialize in supplying the domestic market’s demand for detergents.
Commenting on the agreement, Sadara’s Value Park Director Mohammad Alazzaz said: “We welcome the interest of Korean SMEs to participate in our specialty chemicals market which is growing rapidly in line with the move to diversify the Kingdom’s economy.”
The director said: “This consortium between a Korean Specialty company as technology provider and local Saudi Investors and entrepreneurs is a great model of collaboration, combining local talent pools and knowledge with international experience and expertise. SFC’s interest in entering the Saudi market highlights the global interest we have received for the many opportunities PlasChem Park has to offer.”
Alazzaz said: “Infrastructure development on site at PlasChem Park is nearly complete, with power and utilities tie-ins being finalized in each of the divided lots. PlasChem Park is uniquely positioned to enable and support downstream opportunities in many market segments such as those industries that rely on EO and PO, and we look forward to welcoming SDC to the EO/PO Cluster. PlasChem Park investors will also benefit from the many additional shared services that are being developed, reducing their capital footprint as well as simplifying and streamlining their operations in the long run,” said Alazzaz.
SFC CEO Hong Jungku said: “This joint venture is an excellent opportunity for us in the SFC and for our Saudi partners. We are creating a surfactants plant which is very advanced technologically and has very good cost efficiency. The joint venture leverages the unique strengths of SFC and our Saudi partners to create substantial value for our stakeholders.”
In welcoming the deal, Maydan Industry Managing Director and SDC Chairman Khalid Alluhaidan said: “The positive impact of the Saudi government’s vision in diversifying the Kingdom’s economy has helped create this alliance with SDC and enabled this deal with Sadara to come to fruition.”
He said: “We greatly appreciate the dedicated support by our colleagues in Sadara and we would also like to extend our thanks and appreciation to the Royal Commission for Jubail & Yanbu for their support in developing PlasChem Park.”
PlasChem Park is attracting diversified investments for downstream applications such as the production of oil and gas chemicals, construction materials, paints and coatings, as well as home and personal care products.
These investments will create unprecedented downstream manufacturing opportunities, new jobs for Saudi nationals, as well as contributing to the fulfillment of the Government’s vision to diversify the Kingdom’s economy.
Sadara is a joint venture developed by the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company. With a total investment of about $20 billion, Sadara is building a world scale chemical complex in Jubail Industrial City II in Saudi Arabia’s Eastern Province. Comprising 26 world scale manufacturing units, the Sadara complex is the world’s largest to be built in a single phase and will be the first in the Middle East to use refinery liquids, such as naphtha, as feedstock.


American Airlines ‘unaware’ of some Boeing 737 MAX functions until last week

Updated 29 min 34 sec ago
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American Airlines ‘unaware’ of some Boeing 737 MAX functions until last week

  • The FAA and Boeing are evaluating the need for software or design changes to 737 MAX jets
  • ‘Safety remains our top priority and is a core value for everyone at Boeing’

WASHINGTON: American Airlines Group Inc. said on Wednesday it was “unaware” of some functions of an anti-stall system on Boeing Co’s 737 MAX until last week.
Boeing and the US Federal Aviation Administration (FAA) issued guidance on the system last week after a Lion Air jet crashed in Indonesia on Oct. 29, killing all 189 people on board.
The FAA warned airlines last week that erroneous inputs from the system’s sensors could lead the jet to automatically pitch its nose down even when autopilot is turned off, making it difficult for pilots to control.
The system was designed to prevent the jet from stalling, according to information provided by Boeing to airlines.
“We value our partnership with Boeing, but were unaware of some of the functionality of the Maneuvering Characteristics Augmentation System (MCAS) installed on the MAX 8,” an American Airlines spokesman said.
“We must ensure that our pilots are fully trained on procedures and understand key systems on the aircraft they fly.”
Indonesian investigators said on Monday the situation the crew of a doomed Lion Air jet was believed to have faced was not contained in the aircraft’s flight manual. US pilot unions were also not aware of potential risks, pilot unions said.
The FAA and Boeing are evaluating the need for software or design changes to 737 MAX jets in the wake of the Lion Air crash, the regulator said on Tuesday.
The American Airlines spokesman said his airline was continuing to work with Boeing and the FAA and would keep pilots informed of any updates.
A Boeing spokeswoman said the manufacturer could not discuss specifics of an ongoing investigation but it had provided two updates for operators around the world that re-emphasize existing procedures to deal with situations relating to MCAS.
“We are confident in the safety of the 737 MAX,” she said. “Safety remains our top priority and is a core value for everyone at Boeing.”