Sipchem Adds Acetate Production in Saudi Arabia

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Saudi International Petrochemical Company (SAU:2310) (Sipchem) (Al-Jubayl, Saudi Arabia) has joined with Rhodia Brazil (EPA:RHA) (Sao Paulo, Brazil) to design and construct two new acetate production units at its existing petrochemical complex in Al Jubayl, Saudi Arabia. When operational, the units will produce 100,000 metric tons per year of ethyl acetate and 100,000 metric tons per year of butyl acetate. Sipchem expects construction to begin during summer or fall of this year, and full operations before the end of 2013.

Rhodia's responsibility to the project will be to provide the proprietary process technology and the needed ethanol feedstock for the units. The units will require approximately 25,000 metric tons per year of ethanol to meet the full production capacities. Rhodia could buy the ethanol from local producers or import sugarcane-based ethanol from Brazil. Rhodia also will assist in the marketing of the products.

Sipchem selected eTEC Arabia Limited (Al Khobar, Saudi Arabia) as the engineering and construction (E&C) firm to see this project implemented. Sipchem awarded a lump-sum, turn-key contract for the units. The E&C company is a subsidiary of eTEC Engineering & Construction Limited (Seoul, South Korea).

This plant will be the first in the region to produce ethyl and butyl acetates. Speculation suggests that the product will be sold mainly for domestic use and the European market. Ethyl acetate is used to decaffeinate coffee beans and is a component in many perfumes, as well as paints and varnishes.

View Project Report - 300017492 300025959

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.