RIYADH: Riyadh-based Saudi Basic Industries, also known as SABIC, one of the leading petrochemical firms worldwide, announced the start of operations of its petrochemical joint venture with US ExxonMobil.
US Texas is to witness the launch of an ethylene production unit – operating an annual capacity of around 1.8 million tons, the homegrown petrochemical company said in a statement.
The new production unit, which started construction in 2019, will produce materials to be utilized in packaging, agricultural film, construction materials, clothing, and automotive coolants.
This project is in line with SABIC’s strategy, aimed at diversifying its feedstock as well as strengthening its position in North America.
“This is a remarkable achievement that positions us well to help meet growing global demand for performance products while providing meaningful investment in the US Gulf Coast,’ president of ExxonMobil Karen McKee said, commenting on the partnership.
SABIC noted that the deal’s financial impact is expected to roll out on the company’s financial statements during the ongoing quarter.
In the latest trading session, shares of the company edged down by 0.2 percent to close at SR126 ($33.6).