(MENAFN - Arab News) The Saudi International Petrochemical Company (Sipchem) yesterday announced the completion of the sale of 11 percent of shares in two of its affiliates (International Acetyl Company and International Vinyl Acetate Company) to the Kuwait-based Ikarus Petroleum Industries Company. The shares were valued at SR240 million.
According to a company statement, Sipchem will maintain ownership of 76 percent of shares in both the companies. Sipchem had previously announced the selection of Ikarus as its new partner in both companies with an intended share of 15 percent. However, the two parties agreed at later stage to reduce this percentage to 11 percent. As a result of this deal, Sipchem will realize a profit of SR55 million which will be reflected in the financial statements of the second quarter of this year.
The International Acetyl Company and International Vinyl Acetate Company are limited liability companies and are established in the Jubail Industrial City with a total paid-in capital of SR1.68 billion.
The two companies will produce 460, 000 metric tons of acetic acid, acetic anhydride and 330, 000 metric tons of vinyl acetate monomers. Both companies are expected to start production in the third quarter of this year.
Established in 1999, Sipchem actively develops and invests in petrochemical and chemical industries, both basic and intermediate to produce chemicals used to manufacture a multitude of products that improve the lives of people worldwide.
Through its affiliates, International Methanol Company (IMC) and International Diol Company, Sipchem currently produces over one million mtpa of methanol and 75,000 mtpa of butanediol.