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, Joint Venture, Asia, Materials Suppliers
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 sets new rule for phthalate DnPP

December 24, 2014 11:25 am ET

A federal agency has issued new regulations for a phthalate used in PVC production.    More

Image

European polymer firms may face more pressure from US shale

December 24, 2014 9:57 am ET

InterBulk Group plc, the publicly-traded logistics group, has warned that European polymer markets would continue to come under pressure from new...    More

Image

Patents the springboard for Aussie company to play on global stage

December 22, 2014 4:19 pm ET

Obtaining patents on its technology is helping an Australian manufacturer of compostable and biodegradable plastic resins becoming a leading player...    More

Image

Swedish compounder makes first North American plastics acquisition

December 22, 2014 10:19 am ET

Swedish rubber compounder Hexpol AB has made its first North American plastics acquisition, buying the plastics compounding business of RheTech Inc....    More

China's Jinming honored as global partner by ExxonMobil

December 22, 2014 12:08 pm ET

Guangdong Jinming Machinery Co. Ltd. has been recognized as a global strategic development partner by ExxonMobil Chemical Co.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events