Refining & Petrochemicals Middle East
Saudi’s Advanced Petrochemical unit signs a $800mn loan deal with SIDF
Saudi Arabia-based Advanced Petrochemical Co. announced that its subsidiary Advanced Polyolefins Industry Co has signed a loan deal worth $800 million with the stateowned Saudi Industrial Development Fund, known as SIDF.
Advanced Polyolefins Industry Co. will use the funds to finance the construction of propane dehydrogenation and polypropylene plants, according to a filing made by the company to the Saudi Stock Exchange.
Located in Jubail industrial city, the plants will have the capacity to manufacture 843,000 tons of propylene and 800,000 tons of polypropylene annually, the filing said.
Polyolefins are macromolecules formed by the polymerization of olefins monomer units, and are widely used for manufacturing various consumer goods, including containers, buckets, pipes, toys plastic wraps, and sheets, bottles and extrusion coated paper cartoons.
Last year, the company has announced that its subsidiary, Advanced Global Investment Company (AGIC), a whollyowned subsidiary of ADVANCED, has signed long-term off-take agreements for the sale of polypropylene with Vinmar International of USA (250,000 metric tonnes per annum), Tricon Dry Chemicals of USA (250,000 metric tonnes per annum) and Mitsubishi Corporation of Japan (120,000 metric tonnes per annum).
The company believed that securing a long-term off-take commitment from these renowned and experienced off-takers is a significant milestone for the success of this joint venture, represents confidence on ADANCED capabilities and expertise and will also help to achieve ADANCED’S long-term strategic plans and will improve the profitability of ADANCED and APOC due to the fair and competitive commercial terms.