Saudi Petrochemical promotes diversification strategy such as polyurethane project

Recently, the 5th Gulf Area Petrochemical and Chemical Association (GPCA) Forum was held in Dubai, United Arab Emirates. The ever-weakening raw material advantages and the export of products that have met with resistance have become one of the main topics discussed by participating countries.
Saudi Arabia, the leader in the petrochemicals industry in the Middle East, began its diversification strategy. In respect of raw materials, some new projects are turning to the use of mixed raw materials; in terms of products, petrochemical companies are diversifying from basic petrochemical production to business diversification, and supporting the construction of high value-added downstream projects has become a development trend.
Saudi Aramco’s joint venture with Sumitomo Chemical’s Rabigh Refining & Petrochemical Company’s $10.3 billion joint petrochemical complex in Rabigh was completed in 2009. The company has already begun planning that the second phase of the project is almost all high value-added downstream operations. The project will add 17 sets of equipment, including an aromatics complex with a total capacity of over 1 million tons/year of benzene, toluene and xylene, and Thermoplastic polyolefins, ethylene/vinyl acetate copolymers (EVA), MTBE, MMA, PMMA, acrylic and superabsorbent resins, Cumene, phenol, cyclohexanol, caprolactam, nylon 6, hydrogen peroxide and polyether polyols.
In addition, Saudi Basic Industries has recently established the Functional Chemicals Business Unit, which plans to build several projects, including the following production facilities: polyurethane, elastomers and nylon 66.

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