Rabigh, Saudi Arabia -- Rabigh Refining and Petrochemical Co. (Petro Rabigh) is to invest around 400 million Saudi riyals ($100 million) to construct a new polyol processing plant to supply proplylene oxide to two companies: Saudi Advanced Industries Co. (SAIC) and the National Industries Co. (TANSEE).
The new facility, which will be constructed in the local Rabigh industrial area, will produce 120 kilotonnes per annum of polyether polyol, which is used in the production of polyurethane.
Under the agreement, Petro Rabigh will supply 100 kt of PO per annum to the two companies.
Petro Rabigh ceo Ziad Bin Sami Al Laban said the project marks a significant change in the petrochemical industry in Saudi Arabia by bringing in production of high-quality, high-value products -- which give high financial returns and create employment opportunities for Saudi workers.
According to Petro Rabigh, demand for polyol in the Middle East and African markets amounts to 450 000 kt per year with an annual growth rate from 8-11 percent. (RD)