By an OGJ correspondent
NICOSIA, Jan. 9 -- Saudi Arabian Basic Industries Corp. (SABIC), Riyadh, signed a 4.33 billion riyals ($1.154 billion) loan Wednesday with a consortium of international and local banks to finance construction of a petrochemical plant for its United Petrochemical Co. subsidiary at Jubail Industrial City.
Sabic said Riyad Bank acted as lead manager for the loan, and Gulf International Bank served as independent financial adviser. The Saudi Public Investment Fund will provide an additional 1.5 billion riyals ($400 million).
The proposed United plant is to start production in the second half of 2004 and will have an annual production capacity of 1 million tonnes of ethylene, 575,000 tonnes of ethylene glycol, and 150,000 tonnes of linear alpha olefins.
Another facility, an 800,000 tonne/year polyethylene plant in which United has a 50% interest, is currently under construction in Jubail at the site of Sabic's affiliate Petrokemya (Arabian Petrochemical Co.).
