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Petro Rabigh Signs An Agreement to Establish New “
Polyol” Processing Plants
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Rabigh, July 2010: In its capacity
as the only producer of propylene oxide in the Gulf region and the Middle East with
a production capability of 200,000 tons per year, Rabigh Refining and Petrochemical Company (Petro Rabigh) signed an agreement with two joint companies: Saudi Advanced
Industries Company (SAIC) and the National Industries Company (TASNEE) whereby Petro
Rabigh provides propylene oxide for the two joint companies. According to the agreement,
the two joint companies buy a total of 100,000 tons of propylene oxide per year
and establish an integrated plant to produce “polyol” within the industrial area
of Petro Rabigh which will provide the feed.
The agreement was signed by Engineer Ziad Bin Sami Al Labban, the President and
CEO of Petro Rabigh, Dr. Muayed Bin Esa Al Qertas, Deputy Chairman of the Board
of Directors and representative of the National Industries Company (TASNEE) and
Mr. Abdul Aziz Bin Abdullah Al Doailej, member of the Board of Directors and representative
of the Saudi Advanced Industries Company (SAIC). The plant in which investment amounts
to 375-400 million Saudi Riyals will produce 120,000 metric tons per year of polyether
polyol which is used to produce polyurethane which in turn is used in carpet, car
and heat insulation products industries. It will utilize advanced industrial processing
technologies from Carpenter Company , the head office of which is in Virginia, USA.
Talking about this new project, Engineer Ziad Bin Sami Al Laban remarked, “ This
project marks a significant change in the petrochemical industry in the Kingdom
of Saudi Arabia by bringing about producing highly advanced products with added
value and high quality, availing the production of new and advanced industries, which brings in the highest financial returns from oil and gas resources in the
Kingdom and creating a good number of employment chances for Saudis.” It should
be noted that the demand for polyol in the Middle East and African markets amounts
to 450 million tons per year with an annual growth rate from 8% to 11%.
It is worth mentioning that the availability of this plant’s products in the local and regional markets will lead to the production of several high quality products
like insulation foams used in making household equipment, adhesives, basic products
used in making mattresses, carpets and car seats and soft plastic. |