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Advanced Petrochemical signs offtake deals for PP from planned complex at Jubail

December 30/2020

MOSCOW (MRC) -- Saudi-based Advanced Petrochemical Company, a key manufacturer of polypropylene products, said its subsidiary, Advanced Global Investment Company (AGIC), has signed off-take agreements for the sale of polypropylene with two US-based groups - Vinmar International and Tricon Dry Chemicals - and Mitsubishi Corporation of Japan, said Chemweek.
 
As per the long-term deal, AGIC will supply 250,000 metric tonnes per annum of polypropylene each to Vinmar and Tricon Dry Chemicals, while Mitsubishi will get 120,000 MT, stated Advanced Petrochemical Company in its filing to Saudi Tadawul. 
 
The supply of the entire polypropylene stock will be done from its Advanced Polyolefins Company (APOC) facility in Jubail Industrial City set up as a joint venture with South Koreas SK Gas Petrochemical, it stated. 
 
Once operational, the APOC plant will have the capacity to produce 800,000 metric tonne per annum of polypropylene.

As MRC informed earlier, Advanced Petrochemical Co. said its 85%-owned subsidiary, Advanced Polyolefins Co. (APOC), obtained a conditional approval to secure SAR 3 billion loan from Saudi Industrial Development Fund (SIDF), according to a bourse statement. The loan, which can be disbursed until June 2025, is repayable in 16 semi-annual installments, starting July 2026, over a period of eight years. The loan will be guaranteed by mortgage on all fixed assets of APOC to SIDF, in addition to providing corporate guarantees from the shareholders of APOC.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in  January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.


mrcplast.com
Author:Anna Larionova
Tags:PP, PE, PP block copolymer, homopolymer PP, PP random copolymer, Advanced Petrochemical Company.
Category:General News
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