Saudi Basic Industries Corp, Korea's SK Global Chemical set up $595 million venture

DUBAI: Saudi Basic Industries Corp, Sabic, said on Monday one of its units has entered into a $595 million 50-50 joint venture agreement with Korean petrochemical manufacturer SK Global Chemical for a refined oil products plant in Singapore.

The joint venture between SABIC Industrial Investment Company and SK Global Chemical will own a plant that has been recently completed by SK at its complex in Ulsan, South Korea and will use cutting edge Nexlene technology, Sabic said in a statement.

The new venture will be located in Singapore with an expected annual capacity of 230,000 tonnes. The plan is to set up production bases in highly competitive polyethylene markets in Saudi Arabia and worldwide, the company said.

The agreement is subject to regulatory approval.