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Logo of Methanol Chemicals Co. (Chemanol)
Methanol Chemicals Co. (Chemanol) and Global Company for Downstream Industries (GDI) inked today, Oct. 16, heads of agreement for a strategic partnership to produce specialty chemicals, according to the filing to the Saudi Exchange (Tadawul).
This includes the production of methyl diethanolamine and choline chloride, at an indicative cost of approximately SAR 500 million. The partnership aims also to explore the possibility of producing other chemical materials such as dimethyl disulfide, dimethyl sulfate, chlorine derivatives, poly alpha olefins and aromatic solvents.
The agreement enhances Chemanol’s future plans for strategic transformation to become one of the largest producers of specialty petrochemicals in the region.
The two petrochemical producers are currently preparing the economic and technical feasibility studies for future projects, pending the approvals of competent authorities. This is besides communicating with international technology providers regarding licenses for the necessary technologies, while determining sources of funding for these projects.
The relevant financial impact shall be determined upon the completion of all studies in line with market changes. Updates will duly be revealed, the statement added.
On Feb. 11, Chemanol signed a non-binding memorandum of understanding (MoU) with GDI to explore cooperation opportunities between the two parties in field of petrochemical products, according to Argaam’s data.
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