Sabic and Korea's SK set up $600 million metallocene JV

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 26, 2014 11:47 pm ET
Updated: May 26, 2014 11:49 pm ET

Related to this story

Topics Materials, Materials Suppliers, Asia, Joint Venture
Companies & Associations Saudi Basic Industries Corp./Sabic

Saudi Arabia’s Saudi Basic Industries Corp. (Sabic) and South Korean firm SK Chemicals Co. Ltd. said May 27 they are forming a $595 million joint venture to make metallocene linear low density polyethylene.

SK is contributing a manufacturing plant in Korea and the partners are planning a second facility in Saudi Arabia.

The 50-50 venture, which will use SK’s Nexlene metallocene technology, is “expected to operate a series of manufacturing plants” worldwide to make advanced LLDPE including metallocenes, polyolefin plastomers and polyolefin elastomers, the companies said.

Seongnam-based SK is bringing a recently completed 230,000-metric-ton-per-year capacity manufacturing plant at its complex in Ulsan, South Korea, into the JV, and the companies said they have plans to follow that with a facility in Saudi Arabia, although they did not provide specifics.

“Over time, production bases will be established worldwide,” the companies said.

The joint venture, which needs regulatory approval, will be based in Singapore. The companies said they signed the agreement May 26 in Seoul.

"Nexlene will serve as a growth engine for both of our companies,” said Cha Hwa Youp, CEO of SK Global Chemicals. “The joint venture will continue to upgrade Nexlene technology and set up production bases at locations that exhibit competiveness in the high-end polyethylene industry."

Riyadh-based Sabic said the joint venture will allow it to expand its product line and help it improve its presence in Asia, where it said it has a partnership with Chinese state-owned petrochemical firm Sinopec.

"We are happy to establish this partnership with SK Global Chemical and bring the best in advanced material science closer to our expanding customer base in Asia,” said Sabic Vice Chairman and CEO Mohamed Al-Mady.

Traditionally the metallocenes market has been dominated by U.S. and Japanese firms, but South Korean and Chinese companies have been stepping up their research efforts.

The companies said they will be looking at markets such as packaging, footwear, pipe and wire coatings, and consumer goods made from rotational molding.


Comments

Sabic and Korea's SK set up $600 million metallocene JV

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 26, 2014 11:47 pm ET
Updated: May 26, 2014 11:49 pm ET

Post Your Comments


Back to story


More stories

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Haitian's standardization efforts paying off

August 29, 2014 9:53 am ET

Streamlined design efforts and robust export sales helped propel Ningbo, China-based injection molding machine manufacturer Haitian International...    More

Image

Chinese compounders seek market shares, often at the expense of margins

August 29, 2014 10:02 am ET

China's largest compounder, Kingfa Sci. & Tech. Co. Ltd., as well as its more automotive-focused counterparts Shanghai Pret Composites Co. Ltd. and...    More

Image

PP prices rise 5 cents

August 28, 2014 3:59 pm ET

After a one-month break, volatility has returned to the North American polypropylene resin market, with prices increasing by an average of 5 cents...    More

Image

DuPont fined for 2010 chemicals release

August 28, 2014 1:37 pm ET

DuPont Co. has been fined almost $1.3 million for the release of several chemicals — including plastics feedstock phosgene — at its plant ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events