National Petrochemical Industrialisation Company (NPIC) and Basell Holdings Middle East GmbH
(Basell) signed on Wednesday, 14th Rabi Awal 1422 corresponding to 6th June 2001, the joint venture
agreement during a reception held in Riyadh under the patronage of H.H. Prince Abdullah Bin Faisal
Bin Turki Al-Saud, Assistant to the Minister of defence and Aviation and Inspector General, Chairman of the Economic Offset Committee in the presence of a large number of government officials,
diplomats and businessmen from the Kingdom and GCC countries. The name of the joint venture will be
Saudi Polyolefins Company.
The new Petrochemical Complex for the production of Polypropylene (PP) from Propane is to be erected in Al-Jubail, Saudi Arabia, in the course of the next two-and-a-half years. Designed for an annual capacity of 450,000 tonnes, this new PP production plant will be operated by the newly formed joint venture, in which Basell Holdings Middle East GmbH (wholly owned by Basell Polyolefins) and the NPIC, a 51% subsidiary of the National Industrialisation Company (NIC), Riyadh, Saudi Arabia, hold 25% and 75% shares respectively.
The formation of Basell Polyolefins came about as the result of a 50-50 joint venture established between the Royal Dutch/Shell Group and BASF under which Montell, Elenac and Targor merged all polyolefins activities in October 2000.
The contractors responsible for the Engineering, Procurement and Construction of the entire Project Complex are ABB Lummus Global, USA and Samsung Engineering Company, South Korea.
The first step of PP production will be the dehydrogenation of propane into propylene; with an annual capacity of 450,000 tonnes. The Catofin Technology from ABB Lummus Global will be used for this part of the complex. Downstream Polypropylene Polymerisation is based on the Novolen Gas Phase Technology to produce 450,000 tonnes of homopolymers and random copolymers of PP. The polypropylene produced will be marketed domestically and internationally by the joint venture partners.
Engineer Mubarak A. Al-Khafrah, Chairman of the Board of "NPIC" stated that NPIC considers this important project as a cornerstone in its strategy to focus on petrochemicals and it is very pleased with its partnership with Basell which is one of the largest and most reputable companies in the world in the Polyolefins business.
Dr. C.A. Linse, Chief Operating Officer, Polypropylene of Basell Polyolefins Company stated that "The investor friendly climate in the Kingdom combined with ample availability of feedstock and the pro-active development of industrial infrastructure by the Royal Commission for Jubail and Yanbu have created and sustained the impressive development of the Saudi petrochemical industry over the last 25 years." He also added "This is Basell's first important step into a major investment in the Kingdom of Saudi Arabia. This event creates a new focus in our long-term business strategy."
