SABIC, Asahi and Mitsubishi ink JV for Middle East acrylonitrile, sodium cyanide projects
Saudi Basic Industries Corp. (SABIC), Asahi Kasei Chemicals Corp. and Mitsubishi Corp. signed a strategic joint venture (JV) agreement to build a manufacturing plant for acrylonitrile and sodium cyanide, with subsequent sales and distribution to be carried by the partners.
The joint venture will be based in Saudi Arabia and named the Saudi Japanese Acrylonitrile Company (SHROUQ), the companies said.
The plan is to establish world-scale plants with capacities of 200,000 metric tons annually of acrylonitrile and 40,000 metric tons annually of sodium cyanide at one of the SABIC affiliates’ sites in Jubail Industrial City, Saudi Arabia.
Mohamed Al-Mady, SABIC vice chairman and CEO, said: "A key driver for the project is Saudi Arabia’s National Industrial Clusters Development Program, aimed at growing and diversifying the Kingdom's manufacturing sector."
He also noted that acrylonitrile and sodium cyanide are “very important chemicals for the downstream diversification into acrylonitrile butadiene styrene (ABS), carbon fiber, acrylic fiber, acrylamide and others, which serve various industries such as automotive, construction, water treatment, oil recovery, personal care, consumer goods, pharmaceuticals, electronics, gold mining and many others.
“In particular, [sodium cyanide] will support the local mining industry in Saudi Arabia,” he added.
The Asahi Kasei Group identified acrylonitrile operations as a focus for global expansion, with the aim of gaining the top position in the global market, it said. Asahi also said that solid demand growth for acrylonitrile is forecasted to continue worldwide, and that Asahi Kasei Chemicals had been considering the construction of a new plant to meet rising demand in the Middle East and North Africa.
The Asahi Kasei Group commented that the new capacity, joined with their other production in Japan and Korea, will make them the largest producer of acrylonitrile in the world at some 1.4 million tons per year.
Under the agreement, the three partners will now begin formulating the basic engineering design and perform advance work on a detailed business plan. Leading world-class acrylonitrile and sodium cyanide technology, global network, established infrastructure and feedstock resources are the strengths that SABIC and the partners bring to the JV, the companies said.
The partners are targeting the development of a globally competitive project with best-in-class industrial performance, they said. A final decision on capital expenditures is expected to come during 2012.
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