Sahara inks deals with Chemanol and Japanese partners

Sahara Petrochemicals signed today a memo of understanding with Chemanol thereby the latter will supply feedstock to the new neopentylglycol (NPG) project, in return for a stake, the two firms said in filing on Tadawul.
 

Sahara’s new NPG project will produce 50,000 tonnes of NPG, according to Chairman Abdulaziz Al-Zamil.

The company signed also two heads of agreements with Japan’s Mitsubishi Gas Chemical (technology proprietor) and Sojitz Corporation for building the plant at Jubail Industrial City, with initial cost of SAR 470 million.

Stakeholders of the project will be Sahara Petrochemicals (48 percent), Chemanol (15 percent), while the two Japanese firms will jointly own 37 percent.

The project is expected to be operational in the second quarter of 2014, according to Essam Himdy, managing director at Sahara Petrochemicals.