The petrochemical industry in the Middle East has long proved a staple sector for economic development.
In Saudi Arabia the last 8 years has seen the foundation and development of Saudi Kayan Petrochemical Company, a business launched in 2006 with the vision to become a leading manufacturer of basic and value added petrochemical products.
In April of that year, Mohamed Al-Mady, Vice Chairman and CEO of Saudi Basic Industries Corporation (SABIC), announced that SABIC was a strategic partner in the formation of the Saudi Kayan Petrochemical Company. This followed the signing of partnership agreements with Kayan for the establishment of the public stock company. The new company’s capital amounts to 12 billion Saudi Riyals.
At the time it was announced that Saudi Kayan would be based in Al-Jubail Industrial City and would have an annual production capacity exceeding 4 million metric tons of petrochemical and chemical products.
It was also announced that 45 per cent of the capital would be offered for public subscription at a nominal value of 10 Saudi Riyals per share, with SABIC holding a further 35 per cent of the company’s capital and Kayan responsible for the remaining 20 per cent.
By January 2011 Saudi Kayan Petrochemical Company (Saudi Kayan) had shipped its first export production of acetone from its Jubail complex to India.
Acetone, a part of the phenolic chain, is used to make methyl methacrylate (MMA), polycarbonate (PC), solvents, adhesives and paints.
The initial shipment of some 1,600 metric tons from the Port of Jubail, on Saudi Arabia’s Gulf coast, set a record at the time as the first shipment of acetone from the Middle East, Sabic announced.
The initial shipment of acetone was earmarked for manufacturing customers in the Indian market, while some of the acetone produced at the plant was also used by other units at Saudi Kayan to produce high-value PC.
At that time Sabic’s Performance Chemicals Strategic Business Unit (SBU) reported the rated capacity of the Acetone plant at Saudi Kayan at 140,000 metric tons per year.
Back in 2011 Al-Mady noted that the company was also set to diversify its product portfolio in pursuit of long-term profitable and sustainable growth.
Al-Mady stated: “The way we are introducing products will not only help Sabic, but also our customers sell products that are sustainable.”
He also noted that the Performance Chemicals SBU would be one of the main drivers of Sabic’s diversification strategy as the company implemented its 2020 vision of being the world’s preferred leader in chemicals.
Today the business is very much up and running as a commercial venture and its diversity is being realised as Saudi Kayan produces a number of specialized chemicals in Saudi Arabia for the first time.
These products include Ethanolamines (MEA, DEA & TEA), Ethoxylates, Phenol, Cumene and Polycarbonate which will provide wide web of opportunities for the downstream industries within the Kingdom. Besides the products mentioned above, Saudi Kayan is also producing Ethylene, Propylene, Polyethylene, Polypropylene, Ethylene Glycol, Natural Detergent Alcohol, Bisphenol-A, Acetone and other products.
Progression continues and in June 2013 news broke that Saudi Kayan would be involved in the creation of the world’s largest butanol plant to support downstream industries in Saudi Arabia. The plant is set to be located at Tasnee’s Petrochemical Complex in Jubail Industrial City and will create a projected 200 new jobs.
The Saudi Butanol Company (SaBuCo), which will be building the world’s largest butanol plant in Jubail, was recently registered by the Saudi Ministry of Commerce and Industry.
At its first meeting in Jubail recently, the SaBuCo board observed that the new joint venture was a reflection of the strong cooperation between three leading Saudi petrochemical companies and their commitment to create economic value through efficient and effective utilization of the Kingdom’s natural resources.
The three project partners involved are Saudi Kayan Petrochemical Company (Saudi Kayan), a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic); Sadara Chemical Company (Sadara), a joint venture developed by Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow); and Saudi Acrylic Acid Company (SAAC), owned by TSOC, an affiliate of Tasnee Company and Sahara Petrochemicals Company.
The project investment amount for the project was estimated to be in the region of $517 million, with the products supporting the continued growth of the Kingdom’s paints and coatings industries.
The design capacity of the plant, which is scheduled to go on-stream in 2015, is 330,000 metric tons per annum of n-butanol and 11,000 metric tons per annum of iso-butanol.
At the time, Mazyad Al-Khaldi, Saudi Kayan president, confirmed that the project will add a new product to the Saudi Kayan portfolio, which will contribute to the development of the local downstream industry. “We are happy at the success all of us have achieved in arriving at a workable business arrangement. It was only due to the dedicated efforts and teamwork on the part of all the partners in all areas that we have been able to make the project a reality,” he said.
Saudi Kayan has come a long way in 8 short years and the next phase of its exciting expansion is well underway.