Saudi- Sipchem signs SR164.8m loan deal for new plant 

(MENAFN - Arab News) One of Saudi International Petrochemical Co.'s (Sipchem's) affiliates, Sipchem Chemicals Company, has signed a SR 164.8 million loan facility agreement with Saudi Industrial Development Fund (SIDF) to support financing of the construction of ethyl acetate and butyl acetate plant (EA/BA) with production capacity of 100,000 tons per year.

The project is located in Jubail Industrial City. Ali A. Al-Ayed, director general of SIDF, and Abdullah S. Al-Saadoon, Sipchem president (operations), signed the deal.

"Sipchem Chemicals Company project is considered to be the first of its kind in the region, which is part of Sipchem's Phase III expansion program," said Al-Saadoon.

"The total cost of the project is around SR350 million that is expected to start during the second quarter of 2013," he said.

"The project is expected to supply the local and international markets with ethyl acetate and butyl acetate used as a solvent in inks, industrial liquids and pallets used in paints, etc. The company has announced earlier the signing of the technology agreement with Rhodia, France."

According to him, the feedstock for the production of ethyl acetate are acetic acid, which will be obtained from the International Acetyl Company (one of the Sipchem affiliates), and ethanol, which will be imported from international markets at competitive prices.

Al-Saadoon extended Sipchem's thanks, gratitude, and appreciation to Al-Ayed and his team for their support and professionalism for the development of industrial sector in the Kingdom.