A factory to manufacture silicon carbide is planned to be set up at Jubail Industrial Park by a three-sided international joint venture.
A prominent Saudi group, Ahmad H Algosaibi & Brothers, is teaming up with Washington Mills Management Inc of the US and Sumtomo Corporation of Japan for the venture.
The plant will have an initial production capacity of 24,000 tonnes per year of high-quality silicon carbide.
The parties to the venture have signed an MoU and are proceeding with a feasibility study. They have to obtain various Saudi Government approvals and permits. Production start-up is expected in early 2011.
Silicon carbide is a hard material, with high thermal conductivity and thermal shock resistance. Demand for silicon carbide has burgeoned in recent years as it has applications within slicing of silicon wafers and diesel particulate filters for the photovoltaic industry. Silicon carbide products are widely used and found in many other diverse industrial applications such as abrasive machining, wire sawing, grinding and sand blasting, and in the manufacturing process of semiconductors, power lighting, switching and diodes. Further uses include the production of technical ceramics, cutting tools and iron and steel.
Saud Algosaibi, managing director of Ahmad H Algosaibi and Brothers, commented: “Silicon carbide is a highly added-value project to the Saudi Arabian economy and its industrial landscape. It will enhance local manufacturing diversity and promote newer industries and expand exports.”
Ahmad H Algosaibi is a Saudi-based diversified family company, engaged in manufacturing, trading, real estate, and investments. The company is known for its pioneering projects and is engaged with many multinational companies in Middle East joint ventures and trading relationships.
Rei Ito, general manager of Sumitomo’s industrial performance materials department, commented: “Currently, there is a worldwide shortage of first-quality silicon carbide, particularly in the Asian markets. We believe that a Saudi plant will enable us to serve this fast growing market.”
Tokyo-based Sumitomo Corporation is engaged in multi-faceted business activities and investments, facilitated by a global network in many industrial sectors around the world.
Peter H. Williams, president of Washington Mills, observed: “The combination of AlGosaibi’s expertise in doing business in Saudi Arabia, Sumitomo’s marketing strength, and our knowledge about Silicon Carbide shall be a great added value to this project.”