Saudi Arabia's Advanced Petrochemical Company signed an agreement with South Korea's PolyMirae through its subsidiary to set up a $420 million (Dh1.54 billion) polypropylene plant through a joint venture.
The Saudi firm's South Korean chemical outfit is itself a joint venture in which it owns 30 per cent through its investment company, along with South Korea's SK Gas and Kuwait's Petrochemical Industries Company.
The cost of the 400,000-tonne capacity project is expected to be financed by the partners through 60 per cent of commercial debt while the rest will be funded via equity contributions, Advanced Petrochemical said in a statement on Sunday to Saudi Stock Exchange, where its shares are traded. SK Advanced will hold 49.99 per cent ownership of the South Korean JV project, it said.
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South Korea is Asia's fourth-largest economy and one of the top importer of Middle East crude. The country is also active in development of petchems projects in the Arabian Gulf.
The JV expects to break ground on the project in January 2019, subject to final investment decision. Propylene, the main feedstock for the chemicals scheme will be secured from SK Advanced on a long-term basis, the Saudi company said. Such an off-take was an "important" term to forming the joint venture agreement, it added.
The companies said the " financial impact" of the agreement between the partners is expected after the scheme commences commercial operations in 2021.
SK Advanced has been operating a 600,000-tonne capacity propane de-hydrogenation plant since 2016 in South Korea. PolyMirae is one of the country's leading polypropylene producers and operates four production lines, with a collective capacity of 700,000 tonnes per annum.
'Brazen'
Director: Monika Mitchell
Starring: Alyssa Milano, Sam Page, Colleen Wheeler
Rating: 3/5
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The Breadwinner
Director: Nora Twomey
Starring: Saara Chaudry, Soma Chhaya, Laara Sadiq
Three stars
