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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 Korea’s 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. |
