Saudi International Petrochemical Co (Sipchem) has said it has agreed to form a joint venture with South Korea’s Hanwha Chemical Corp to build polymer plants in Saudi Arabia.

Sipchem said it would hold a 75 per cent stake in the joint venture, and Hanwha would hold 25 per cent.
The plants, which will cost SR4 billion riyals ($1.07 billion), will produce 200,000 tonnes of ethylene-vinyl acetates and 125,000 tonnes of poly-vinyl per year, Sipchem said in a statement posted on the Saudi bourse’s website.
The products are used in the manufacture of sports shoes, clothing and wood.
“The raw material will be provided by (Saudi state oil firm) Aramco and Saudi Basic Industries Corp (Sabic) some of Sipchem’s affiliates,” Sipchem said.
The plants were expected to start production towards the end of 2013, it added.
Sipchem currently operates two plants that produce methanol and butenediol. It expects to start within the next two months production at three other plants that produce carbon monoxide, monovinyl acetate and acetic acid.
The joint-venture with Hanwha will bring the value of Sipchem’s overall investments to SR13 billion by the end of 22013, Sipchem said.