Acetex, Tasnee plan $1 billion Jubail plant expansions

By OGJ editors

HOUSTON, Apr. 19 -- Acetex Corp., Vancouver, BC, has finalized joint venture agreements with National Petrochemical Industrialization Co. (Tasnee Petrochemicals, a joint public-private Saudi company) regarding an investment of $1 billion to construct world-class acetic acid, vinyl acetate monomer (VAM), and methanol facilities at Tasnee's petrochemical complex at Jubail, Saudi Arabia.

The projects, which will utilize Acetex's proprietary acetic acid-methanol coproduction technology, will have an annual production capacity of 500,000 tonnes of acetic acid, 275,000 tonnes of VAM, and 1.8 million tonnes of methanol. Production is expected to begin in 2007.

Acetex will own 50% of the acetyls (acetic acid and VAM) company and 25% of the methanol company.