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May 27, 2014
Sabic and SK Global form polyethylene joint venture
Saudi Basic Industries Corp. (SABIC; Riyadh, Saudi Arabia; www.sabic.com)
and the Korean petrochemical company, SK Global Chemical, have signed a 50-50 joint venture agreement in Seoul, South Korea for a total investment of $595 million to manufacture a range of high-performance polyethylene (PE) products using SK’s Nexlene (PE) solution technology. The agreement was signed by Mohamed Al-Mady, SABIC vice chairman and CEO, and Ja-Young Koo, SK innovation vice chairman and CEO, and is subject to regulatory approval.
The joint venture, which is located in Singapore, is expected to operate a series of manufacturing plants, the first of which was recently completed by SK Global Chemical at its complex in Ulsan, South Korea, with an expected production capacity of 230,000 metric tons per year (m.t./yr). The plants will produce metallocene linear low-density polyethylene, polyolefin plastomers and polyolefin elastomers that will meet the growing needs of diverse industries such as advanced packaging, automotive, healthcare, footwear and electrical & lighting. A second plant is planned for Saudi Arabia. Over time, production bases will be established worldwide.