Sipchem and HELM ARABIA Sign Joint Venture Agreements for Acetyl Projects
Riyadh, Hamburg (June 5th), Saudi International Petrochemical Company (Sipchem) and Helm Arabia GmbH & Co. KG (Helm Arabia) today jointly announced that they have signed in Riyadh, Saudi Arabia, Joint Venture Agreements for establishing a 460,000 tons per year Acetic Acid and a 300,000 tons per year Vinyl Acetate Monomer (VAM) projects in Al-Jubail Industrial City, Saudi Arabia. By signing these agreements Sipchem has taken significant step towards its plan to establish a world-scale acetyls complex in the Kingdom of Saudi Arabia. The acetyl complex is expected to start-up in 2008.
H.E. Abdulaziz A. Al-Zamil, Sipchem's Chairman stated that the plan to establish acetyl complex is a step in the right direction of Sipchem's endeavour towards establishing world class petrochemical complex which is the first of its kind and size in the region. He added "Sipchem is committed in its obligations to the Kingdom by bringing new technologies, foreign investments and creating job opportunities".
Helm Arabia has also signed Marketing and Offtake agreements for the long term offtake of both Acetic Acid and VAM for sale and distribution globally outside the Middle East markets. Sipchem will market the products in the Middle East. Mr. Dieter Schnabel, Helm AG Chairman, indicated that "Helm is pleased to participate in a large Petrochemical Complex in Al-Jubail, Saudi Arabia. These projects will complement the strength of Helm in the petrochemical and chemical marketing". He added "Investing in Saudi Arabia will facilitate sourcing competitive products thus giving Helm a competitive edge in providing Acetic Acid and VAM to its customers worldwide"
Sipchem is a Saudi joint stock company founded in 1999 with current paid in capital of US$ 400 million with participation from leading corporate organizations and investors in the Gulf Cooperation Council region. Sipchem currently operates a 1.0 million tpy methanol plant, and is constructing a 75,000 tpy butanediol plant, scheduled for start-up in December 2005.
Helm Arabia & CO. KG is a company registered in Hamburg, Germany owned by Helm AG, Hamburg and Thales, France. Thales is supporting the project as part of the French economic offset program to develop industry and investment in Saudi Arabia.
Helm AG, which was founded in 1900, is a limited company based in Hamburg in Germany with an international chemicals marketing organization focusing on national and regional distribution. Today Helm AG is one of the world's leading independent chemicals marketing enterprises with branches and sales offices in more than 30 countries and worldwide revenues of 4,1 billion euros. Its specific local and regional knowledge guarantees access to the major markets around the globe.
Thales is a leading international electronics and systems group, serving government and business customers and aerospace, security and services markets worldwide. The group employs 61,500 people throughout the world and generated revenues of 10.3 billion euros in 2004. Thales has been present in Saudi Arabia for over thirty years, providing for example naval, broadcasting, air traffic control and simulation systems.
For more information about Sipchem please contact:
Saudi International Petrochemical Company (Sipchem)
Ali H. Al-Irq
Manager/Government & Public Relations
E-mail ID: aalirq@sipchem.com
Tel. No.: +966 3 3599640 Fax No.: +966 3 3588182
For Information about Helm AG, please contact
HELM AG
Rolf Rüdiger Reichardt
Senior Executive Manager
Admin./Public Relations
E-mail: R.R.Reichardt@helmag.com
Tel: +49 40 2375 1820
For more information about Thales, please contact:
Thales
Christophe Robin
E-mail: christophe.robin@thalesgroup.com
Tel: +33 1 57 77 86 26