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Kemya rubber plant to begin operations in mid-2015

31 July 2012

Al-Jubail Petrochemical Company's (Kemya) rubber plant in Al-Jubail, Saudi Arabia, in the United Arab Emirates (UAE), is expected to begin production in the second half of 2015.

"The produced synthetic rubber and other polymers from the plant will be exported to Asia and the Middle East."

The $3.4bn JV between Saudi Basic Industries Corporation (SABIC) and Exxon Chemical Arabia will produce 400,000tn of rubber product a year and other polymers.

The produced synthetic rubber and other polymers from the plant will be exported to Asia and the Middle East and also sold in Saudi Arabia, according to SABIC and Exxon Mobil.

The plant is also aimed at meeting both the domestic and international synthetic rubber markets and strengthen SABIC's downstream industry.

Mohamed al-Mady, SABIC chief executive, said the partners had not yet decided how to finance the plant but all options are open.

"This is the least of our [worries] at this time because we are two strong companies and we have many ways to finance it, it will be announced as soon as we are ready for financing," added Mohamed al-Mady.

The engineering, procurement and construction contract for the proposed plant was awarded to Daelim Industrial, while Technip and Tecnicas Reunidas will construct the plant.

Stephen Pryor, ExxonMobil Chemical president, said the company expects active markets in the Middle East, Asia and Africa for butyl rubber demand.

"The (global) demand for synthetic rubber products are going much faster than GDP, for example the butyl rubber will grow in [the] six pct range for a number of years, EPDM rubber will grow in a similar fashion," Pryor added.