Sipchem mothballs subsidiary's ethyl acetate plant

One of Sipchem's factories

Sahara International Petrochemical Co.'s (Sipchem) board of directors decided on March 18 to stop operations at Sipchem Chemical Co.’s ethyl acetate plant, until further notice.

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In a Tadawul statement, the company said the decision comes in line with Sipchem’s strategy to improve profitability and performance efficiency, ensure liquidity levels and stability, as well as maintain the integrity of the financial structure.

Preparations are currently underway for the halt of production at the ethyl acetate plant located in Jubail Industrial City.

Sipchem expects that the operational integration in its complex will limit the impact of the plant’s closure, and reflect positively on the company’s results in the coming period.

The relevant financial impact will appear in Q2 2025, the company said, adding that material developments will be announced in accordance with the relevant regulations and instructions.

Sipchem Chemical was established in 2011 with a capital of SAR 266 million. It is fully owned by Sipchem, and its annual production capacity is 100,000 metric tons of ethyl acetate, Argaam data showed.

Production at Sipchem Chemical’s polybutylene terephthalate plant stopped on Jan. 1, 2021.