Rhodia and Saudi International Petrochemical to Build 100,000-Ton-Per-Year Ethyl Acetate Plant in Jubail City

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Researched by Industrial Info Resources (Sugar Land, Texas)--Saudi Arabian petrochemical company Saudi International Petrochemical Company (SAU:2310) (Sipchem) (Al-Khobar, Saudi Arabia) has announced that it will be working with France's Rhodia (EPA:RHA) (Courbevoie, France) to facilitate Sipchem's Phase 3 expansion program in Jubail Industrial City.

Under the agreements signed by the two companies, Rhodia will license its state-of-the-art technology to Sipchem for the 100,000-ton-per-year ethyl acetate plant that Sipchem will build and operate at Jubail.

In addition, the two companies signed a marketing agreement and a term sheet covering Rhodia's import of ethanol from international markets to be used as feedstock for the new plant.

The plant will use Rhodia's ethyl acetate production technology to ensure high-quality and low-production costs. In addition, the plant is designed to have the capacity to produce butyl acetate. Rhodia is a global leader in technology, production and marketing for ethyl acetate and butyl acetate.

The plant also will use acetic acid as a key feedstock. The acetic acid will be supplied by the Sipchem subsidiary company, International Acetyl Company Limited (IAC) (Jubail, Saudi Arabia), that operates a 460,000-ton-per-year acetic acid and acetic anhydride plant at Jubail.

Sipchem's CEO, Ahmad Al-Ohali, commented that the plant would be the first in the region to produce ethyl acetate and butyl acetate, and added that "the ethyl acetate plant is expected to service both local and international demand." The ethyl acetate plant is expected to begin operations in 2013.

Sipchem, which was established in December 1999, initiated operations in Jubail by establishing two affiliate companies: the International Methanol Company, which produces 1 million tons of methanol each year, and the International Diol Company, which produces 75,000 tons of maleic anhydride, butanediol and derivatives each year. Under Phase 2 of the expansion at Jubail, Sipchem established three more affiliates. These included IAC, the International Gases Company and the International Vinyl Acetate Company.

Rhodia produces a range of specialty chemicals, including polymers, surfactants, silica and acetates. It supplies value-added products to several diverse market sectors, including the automotive and electronics industries; health and personal care; consumer goods; and industrial products.

The company has 13,600 employees and operates production facilities worldwide, including 19 production sites in North America, 18 production sites in the Asia-Pacific region, 7 production sites in Latin America, and 20 production sites in Europe.

Rhodia's Phenol and Solvents President, Vincent Kamel, sees the signing of the agreements as "the first step for a wider cooperation with Sipchem and other partners in the region."

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