Celanese and Sabicto build plastics plant

Riyadh: US-based Celanese Corporation and Saudi Basic Industries Corporation (Sabic) on Thursday announced their National Methanol Co. (Ibn Sina) joint venture will construct a 50,000-tonne polyacetal (POM) production facility in Saudi Arabia.

The investment supports accelerated future growth plans for Celanese's advanced engineered materials segment, specifically its Ticona Engineering Polymers business, as it delivers innovative solutions for POM customers; and Sabic, in support of its regional business development. Engineering and construction of the facility is expected to begin later this year.

Construction of the facility is part of an extension of the Ibn Sina joint venture, which will now run through 2032. Ibn Sina produces methanol, a key feedstock for POM production, as well as methyl tertiary-butyl ether. Through Ibn Sina, Celanese strengthens its raw material and energy positions.

Celanese, Sabic and Duke Energy Corporation entered into the Ibn Sina joint venture in 1981. Celanese and an affiliate of Duke Energy each hold a 25 per cent interest in the venture, with the remaining 50 per cent held by Sabic. Upon successful startup of the POM facility, Celanese's economic interest in Ibn Sina will increase from 25 per cent to 32.5 per cent, providing further financial benefits for Celanese. Sabic's economic interest will remain unchanged. Over the past three years, Celanese has received approximately $238 million (Dh875.36 million) in dividends from the venture.