Rabigh Refining & Petrochemical Co. (Petro-Rabigh) said it will start production in the fourth quarter next year. The company is a 50-50 joint venture between Tokyo polyolefins producer Sumitomo Chemical Co. Ltd. and the world's largest oil company, Saudi Aramco of Dhahran, Saudi Arabia.
The Rabigh, Saudi Arabia-based venture was formed in September 2005 and the $10 billion complex broke ground in March 2006.
Claiming to be one of the largest integrated refining and petrochemical complexes built at one time, Petro-Rabigh targets nameplate annual capacity of 53 billion pounds of polyolefins, including polyethylene and polypropylene.
Sumitomo's proprietary linear low density PE is used in heavy-duty bags and general-purpose films. Its PP is targeted at film, yarn and general-use injection molding.
Asia will be the venture's largest market, Sumitomo Chemical China chief representative Lee Ronglong said at Chinaplas in Guangzhou. ``About 50-60 percent of the output will be shipped to China.''
Lee also said the company's marketing subsidiary, Sumitomo Chemical Asia Pte. Ltd., opened an office in Dongguan this year.