Albemarle Corporation and TAYF form Venture for 6,000-Ton Organometallic Unit in Saudi Arabia

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Leading specialty catalyst-producing company Albemarle Corporation (NYSE:ALB) (Baton Rouge, Louisiana) and Ibn Hayyan Plastic Products Company (TAYF) (Jubail Industrial City, Saudi Arabia), an affiliate of leading chemicals and metals company Saudi Basic Industries Corporation (SSE:2010) (SABIC) (Riyadh, Saudi Arabia), have entered into an agreement to form Saudi Organometallic Chemicals Company (SOCC) (Jubail Industrial City), a 50:50 joint venture. SOCC will develop an organometallics manufacturing facility in the industrial city of Al Jubail in Saudi Arabia. The new facility will be the first of the kind in the region.

The plant will be designed to produce 6,000 tons per year of tri-ethyl aluminum equivalents. Tri-ethyl aluminum catalyst is a critical requirement of the polyolefin industry. It is chiefly used as a co-catalyst in olefin polymerization in Ziegler-Natta type systems. Besides being used in the Zieglar-Natta polymerization processes for diene, olefin and vinyl polymerization, the catalyst is used in cyclization and linear oligomerization of unsaturated hydrocarbons.

Construction of the new facility is scheduled to begin this year and commissioning is expected to take place in 2012. The location of the plant has been strategically selected so that the catalyst can be delivered easily to the growing number of regional customers.

Mohamed Al-Mady, vice chairman and CEO of SABIC, said that the venture is another step in SABIC's plan to become the preferred global leader in the Chemical Industry. The facility will ensure a stable supply of the catalyst for SABIC's polyolefin plants.

Albemarle Corporation functions under three business units: Catalysts, Fine Chemicals, and Polymer Solutions. The company is a global leader in the production of specialty chemicals required by the electronics, agricultural, automotive, pharmaceutical, petroleum refining, and transportation industries. The company's products also are used in the production of industrial, packaging and construction materials. It is a leader in flame-retardant chemical technologies, and focuses on improving the storage life and stability of various lubricants. It is one of the leading producers of fluidized catalytic cracking catalysts and hydro-processing catalysts, both of which are used in the Petroleum Refining Industry. The company has a commercial presence in more than 100 countries.

The new facility will utilize Albemarle's technology and feature the company's outstanding management of logistics and safety. The facility also will help Albemarle benefit from any other opportunities that emerge in the region.

SABIC is the largest public company in Saudi Arabia and has full or partial interests in 17 affiliated companies. It produces a wide range of chemicals, fertilizers, industrial polymers and metals. It is a global leader in the production of various polymers such as mono-ethylene glycol, ethylene glycol, polyolefins, and polyethylene, among others.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.