A new joint venture has been signed between Saudi and Korean firms to establish a $50m manufacturing plant in PlasChem Park in the kingdom’s Jubail Industrial City 2.
The JV was agreed between Maydan Industry for Industrial Development & Investments Co., Ahmad Kassim Al-Amoudi Group Co. Ltd., and the South Korean technology company SFC to establish Surfactant Detergent Company Ltd. (SDC), according to the Saudi Gazette.
The new facility will produce a range of surfactants, which are specialty chemicals used in the production of detergents and other applications.
Chairman of Maydan Industry, Abdulrahman Al-Swailem, said “This new venture is inspired by the Kingdom’s Vision 2030 which seeks to diversify the economy. The planned manufacturing facility is expected to be 40,000 metric tons with an approximate capital expenditure of SR189m ($50m).”
The JV follows a long-term supply agreement for Ethylene Oxide (EO) and Propylene Oxide (PO) signed previously between Sadara and the SDC partners.
Abdullah Ahmad Al-Amoudi, chairman of AKA, added: “The new project will meet the local and regional market needs for surfactants in a wide range of applications.
“We thank our colleagues at Sadara and the Royal Commission of Jubail and Yanbu on this occasion for their tremendous support in finalizing these agreements and their efforts to develop PlasChem Park.”
PlasChem Park is a chemical and conversion industrial park adjacent to Sadara Chemical Company in Jubail Industrial City 2, developed jointly by Sadara Chemical Company and the Royal Commission for Jubail and Yanbu.