In a fresh boost to the Saudi manufacturing sector, Sabic has teamed up with Japanese firms Asahi Kasei Chemicals Corporation and Mitsubishi Corporation to build production facilities for acrylonitrile (AN) and sodium cyanide (NaCN).

World-scale plans for manufacturing 200,000 tonnes of AN per year and 40,000 tonnes annually of NaCN in one of Sabic’s sites in Jubail Industrial City have been revealed by the venture Saudi Japanese Acrylonitrile Company (Shrouq).

Mohamed Al Mady, Sabic vice chairman and CEO, said a key driver for the project was Saudi Arabia’s National Industrial Clusters Development Programme which aimed to grow and develop the kingdom’s manufacturing sector. "AN and NaCN are very important chemicals for downstream diversification into acrylonitrile butadiene styrene (ABS), carbon fibre, acrylic fibre, acrylamide and other things which serve various industries such as automotive, construction, water treatment, oil recovery, personal care, consumer goods, pharmaceuticals, electronics and gold mining," Al Mady said.

He highlighted that NaCN would particularly support the local mining industry in Saudi Arabia.

The Asahi Kasei Group has identified AN operations as a focus for global expansion towards gaining the number one position in the global AN market. Asahi also states in its official statement that solid demand growth for AN is forecasted to continue worldwide and that Asahi Kasei Chemicals had been considering the construction of a new AN plant to meet rising demand in the Middle East and North Africa.

The Asahi Kasei Group commented that the new capacity, together with its other production in Japan and Korea, will make the company the largest producer of AN in the world at some 1.4 million tonnes per year upon completion of the new plant.

Under an agreement, the three partners will now begin formulating the basic engineering design and perform advance work on a detailed business plan. Leading world-class AN and NaCN technology, a global network and established infrastructure and feedstock resources are the strengths that Sabic and the partners bring to the JV, the statement said.

The partners are targeting the development of a globally competitive project with best-in-class industrial performance. The project will also focus on carrying out all necessary details for the JV incorporation and project evaluation, implementation and execution activities with the final decision on capital expenditure expected during 2012, it said.