The Saudi Basic Industries Company (Sabic) is looking to US banks to provide loans for its third expansion that will boost capacity by more than a third, company vice-president Homood Al Tuwaijri said.

Al Tuwaijri also said expansion could include acquisition of foreign companies involved in the production of petrochemicals and other products.

The third expansion would boost Sabic's total output from around 35 million tonnes to 48 million by the end of 2010, he said.

"In contrast to previous expansions, Sabic is not limiting itself to Gulf-based operations or its traditional financing options. Not only are we now considering direct acquisition of foreign operations, we are also looking into new methods to finance plant expansions, greenfield projects and acquisitions," the official said.

"To do this, we will need to access wider areas of capital markets. We are especially interested in long-term loans from a broad array of international banks. We are particularly interested in American institutions, which are currently under-represented."

Al Tuwaijri said expansion was needed to meet rapid growth in demand in Asian markets.

"Southeast Asia's growing demand for petrochemicals has been, and is forecast to continue to be, twice the rate of that in the West. Future access to these markets is crucial."

Sabic, with a paid-up capital of around $2.6 billion, accounts for 2.3 per cent of global production.

Tuwaijri said Sabic - which is owned 70 per cent by the Saudi government Ñ was considering floating shares on foreign stock markets to raise funds while also assessing debt instruments such as corporate bonds and commercial paper.

"Looking forward into the decade, in light of the growing globalisation of Sabic's business and operations, broader, more flexible and cost-effective funding options will be needed to realise the vision of being among the leading petrochemical producers in the world," he said. "None of this implies Sabic is abandoning its proven joint-venture format.

Joint ventures have brought technology, skills and development to Saudi Arabia and will continue to do so for years to come. "Because growth in Saudi Arabia is good for Sabic, we would also like to urge new investors to enter the growing business-to-business market."