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April 29, 2011
Srategic partnership forms for acrylonitrile and sodium cyanide in the Middle East
Saudi Basic Industries Corp. (SABIC; Riyadh, Saudi Arabia; www.sabic.com
), Asahi Kasei Chemicals Corp. (Tokyo; www.asahi-kasei.co.jp) and Mitsubishi Corp. (Tokyo; www.mitsubishicorp.com) have signed a strategic joint venture (JV) agreement to form a limited liability company, Saudi Japanese Acrylonitrile Company (SHROUQ), which will be located at Al-Jubail, Saudi Arabia. SABIC will own 50 percent of the venture and Asahi Kasei Chemicals and Mitsubishi will together own 50 percent. Initial paid-in capital will amount to SR 40 million (approximately Y 1 billion, or US$ 10.7 million).
The company will build a plant for the manufacture of acrylonitrile (AN) and sodium cyanide (NaCN), with subsequent sales and distribution to be carried by the partners. The agreed plan is to establish world-scale plants with capacities of 200,000 metric tons per year (m.t./yr) of AN and 40,000 m.t./yr of NaCN at one of the SABIC affiliates’ sites in Jubail Industrial City, Saudi Arabia. The hydrogen cyanide byproduct of AN production will be used as feedstock at the NaCN plant to be constructed adjacently. The partners are targeting the development of a globally competitive project with best-in-class industrial performance. The project will also focus carrying out all necessary details for the JV incorporation and project evaluation, implementation and execution activities with final decisions on capital expenditure during 2012.