Business & Money | Monday 17 April, 2017 2:20 pm |

A new joint venture between Maydan Industry for Industrial Development & Investments Co. «Maydan Industry», Ahmad Kassim Al-Amoudi Group Co. Ltd. «AKA», and the South Korean technology company «SFC» was signed to establish a manufacturing plant in PlasChem Park.  The new facility will produce a range of surfactants, which are specialty chemicals used in the production of detergents and other applications.

A new company named the Surfactant Detergent Company LTD. «SDC» will be established as part of the JV agreement. The company will be based in PlasChem Park, a chemical and conversion industrial park adjacent to Sadara Chemical Company «Sadara» in Jubail Industrial City 2 developed jointly by Sadara Chemical Company and the Royal Commission for Jubail and Yanbu.

 

The JV agreement follows a long-term supply agreement for Ethylene Oxide (EO) and Propylene Oxide (PO) signed previously between Sadara and the SDC partners which will be supplied though dedicated pipelines constructed by Sadara.

 

SDC will be the first company in the region to use the very latest Korean technology developed by «SFC». The locally sourced raw materials from Sadara and advanced technology will enable the company to create value for the local market in terms of economic diversification and job creation for Saudis by manufacturing new products at competitive prices for local and regional customers.

Chairman of “Maydan Industry” Eng. Abdulrahman Al-Swailem said, “This new venture is inspired by the Kingdom’s Vision 2030 which seeks to diversify the economy. The planned manufacturing facility is expected to be 40,000 metric tons with an approximate capital expenditure of SR 189 million.”

Mr. Abdullah Ahmad Al-Amoudi, Chairman of «AKA», noted, “The new project will meet the local and regional market needs for surfactants in a wide range of applications. We thank our colleagues at Sadara and the Royal Commission of Jubail and Yanbu on this occasion for their tremendous support in finalizing these agreements and their efforts to develop PlasChem Park.”

 

From his side Mr. Hong Junko, CEO of «SFC» Company, said, “This joint venture is a great opportunity for us and our Saudi partners, as we are creating an advanced, cost-efficient factory that utilizes our technical knowledge to create added value for the Kingdom. The project has already been initiated by senior engineers preparing for the final engineering designs, which will be followed by construction of the plant itself.”

Commenting on this milestone, Mohammad Alazzaz, Sadara’s Value Park Director said, “This agreement represents a milestone for PlasChem Park, as it is an indication of how close we are to seeing the fruits of our labors over the past year or so ripen. SDC will be one of the first projects to break ground in PlasChem Park, and as such is a pioneer in the developing downstream manufacturing industry that is part of Vision 2030.  We are happy to be playing our part, and look forward to future achievements and milestones with SDC.”