Saudi Butanol Company (SaBuCo), which was recently registered by the Ministry of Commerce and Industry, will be building the world’s largest butanol plant to be located in Jubail.
SaBuCo is a joint venture resulting from strong cooperation among three leading Saudi petrochemical companies — Sadara Chemical Company (Sadara), Saudi Kayan Petrochemical Company (Saudi Kayan) and Saudi Acrylic Acid Company (SAAC) — and their commitment to creating economic value through efficient and effective utilization of the Kingdom's natural resources.
A celebration to mark the official formation of SaBuCo was held in Riyadh recently by the three project partners.
While thanking the Ministry of Petroleum and Mineral Resources and the Ministry of Commerce and Industry for their continuing support, the three partners pledged to further expand and deepen their cooperation to support development and diversification of the Kingdom's economy.
With an estimated investment of $ 517 million, SaBuCo will build the first ever butanol plant in the Middle East and its products will support growth of the paints and coatings industry in Saudi Arabia. The design capacity of the plant, which is scheduled to go on-stream in 2015, is 330,000 tons per annum of n-butanol and 11,000 tons per annum of iso-butanol.
Ziad Al-Labban, Sadara CEO, said: "This is another example of success through teamwork and collaboration. We are pleased to team up with Saudi Kayan and SAAC in this joint venture to create further downstream economic value in Saudi Arabia from butanol-based products."
Mazyad Al-Khaldi, Saudi Kayan president, said, "The project will add a new product to the Saudi Kayan portfolio, which will contribute to the development of the local downstream industry.”
"We are happy at the success all of us have achieved in arriving at a workable business arrangement. It was only due to the dedicated efforts and teamwork on the part of all the partners in all areas that we have been able to make the project a reality," he added.
Saleh Al-Nazha, National Industrialization Company (TASNEE) CEO and SAAC chairman, who has been named the general manager of SaBuCo, said: "The butanol plant will provide additional integration to SAAC's Acrylates Complex, which is the first complex of its kind in the region."
"We greatly appreciate the opportunity to collaborate with SABIC/Saudi Kayan and Sadara and their trust in TASNEE to build and operate the joint butanol plant on behalf of the partners. We can jointly benefit from the economies of scales which will enhance our national petrochemical industries' competitiveness in the world," he added.
As per an earlier agreement signed in December, 2012, the new butanol plant will be located at the TASNEE petrochemical complex in Jubail Industrial City and will also be operated by TASNEE. It will provide new job opportunities for Saudi citizens in support of the Kingdom's efforts to create long-term, value adding jobs for nationals.