Advanced Petrochemical Co. announced that its subsidiary Advanced Global Investment Company (AGIC) has obtained an approval from the Saudi Ministry of Energy, Industry, and Mineral Resources to receive the required feedstock to establish a new plant.
The Saudi firm will set up propane dehydrogenation (PDH) unit and polypropylene (PP) unit in Jubail Industrial City, according to a statement to the Saudi Stock Exchange (Tadawul) on Wednesday.
Each unit will have a capacity of 750,000 tonnes per year, the statement added.
With a total cost of about $1.8 billion (SAR 6.75 billion), the two units are scheduled to start operation by the second half of 2024.
The overall project also includes the proposal for establishing polypropylene compounding (PP downstream) unit with a capacity of 100,000 tonnes per year to meet the requirements of the automotive industry in the kingdom.
Moreover, a part of the propylene produced from the PDH unit will also be used to establish an isopropanol (IPA) unit with a capacity of 70,000 tonnes a year.
The investment costs for the PP compounding unit and the IPA unit are estimated at $40 million (SAR 150 million) and $100 million (SAR 375 million), respectively.
It is noteworthy that the Saudi Capital Market Authority (CMA) issued its approval for Advanced Petrochemical Co’s request to raise its capital to SAR 2.164 billion from SAR 1.967 billion through distributing bonus shares.