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SABIC and ExxonMobil proceed with Al-Jubail specialty elastomers project

June 26, 2012
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RIYADH, Saudi Arabia — Saudi Basic Industries Corporation (SABIC) and affiliates of ExxonMobil announce they will construct a world-scale specialty elastomers facility at the Al-Jubail Petrochemical Co. (Kemya) manufacturing joint venture.

The facility will be integrated with the existing Jubail complex and is expected to be completed in 2015. The companies have approved the next stage of project development: engineering, procurement and construction (EPC).

The facility will have the capacity to produce up to 400,000 tons per year of rubber — including halobutyl, styrene butadiene, polybutadiene, and ethylene propylene diene monomer (EPDM) rubbers — thermoplastic specialty polymers and carbon black to serve local markets, the Middle East and Asia. Kemya has awarded the EPC contract for the elastomers facility to Technip, Tecnicas Reunidas and Daelim.

Kemya is a 50-50 joint venture between SABIC and Exxon Chemical Arabia Inc., an affiliate of ExxonMobil Chemical Co. The two companies have collaborated closely since 1980 when they established the joint venture, which produces polyethylene, ethylene, and propylene. The new synthetic rubber project represents a significant broadening of Kemya’s product portfolio.

Associated with the new Kemya elastomers facility is the establishment of the High Institute for Elastomer Industries (HIEI), a vocational training center in Yanbu; a product application center in Riyadh; and thermoplastic polyolefin compounding and inventory management facilities in Jubail.

An expanding transportation infrastructure in the Middle East and Asia Pacific has created strong demand for rubber products. The new world-scale Kemya elastomers project will help meet this ever-growing demand. The facility will rely on commercially competitive, high-impact technologies, including proprietary ExxonMobil EPDM, thermoplastic specialty polymers, and halobutyl rubber technologies.

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