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.

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