Saudi Arabia’s petrochemical company has signed a deal with a South Korean conglomerate to build two chemical production plants valued at $1.8 billion in the kingdom according to ZAWYA.
With the capacity to produce more than 1.6 million tonnes of propylene and polypropylene every year, the facilities will be set up in Jubail Industrial City.
“The high demand from the automotive and medical device industries is also expected to drive the growth” stated researchandmarkets.com.
The research firm predicts that the market for polypropylene is expected to grow at a compound annual growth rate (CAGR) of 5.56 percent between 2019 and 2024. The growing demand for the product is fueled by the increasing usage of plastics and flexible packaging, among others.
Advanced Global Investment Company (AGIC), a subsidiary of Saudi’s Advanced Petrochemical Company, signed a joint venture agreement with SK Gas Petrochemical, an affiliate of liquid propane gas importer SK Gas Co. in South Korea, to construct and operate the plants.
AGIC will be the majority shareholder in the joint venture, accounting for 85 percent equity stake, while the remaining 15 percent will be owned by the South Korean partner.
