Joint venture to produce 250 000 tonnes of acrylic acid in KSA.
Tasnee Sahara Olefins has recently formed a joint venture with chemicals maker Rohm and Haas, to produce 250 000 metric tons of acrylic acid and related esters in Jubail, Saudi Arabia.
Production is due to begin in 2011. These feedstock materials will be used to support the growth of Rohm and Haas’s water-based acrylic products in developing economies.
The joint venture, which will be 75% owned by Tasnee Sahara Olefins and 25% owned by Rohm and Haas, will be called Saudi Acrylic Monomer. Tasnee will have exclusive rights to sell a portion of the acrylic acid products within the GCC countries.
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“Formation of Saudi Acrylic Monomer Company demonstrates our commitment to secure monomers at the right place, at the right time, and at the right cost – in support of the ongoing global growth of our acrylic portfolio,” said Carol Eicher, vice president and director for primary materials business.
Rohm and Haas will consume the majority of the plant’s production to supply the needs of the company’s downstream businesses to make products used in paints and coatings, adhesives, caulks, sealants, plastics additives, detergents additives and in industrial applications, among others.
Some of the plant’s production will also be allocated for sale to external customers.
TSOC and Rohm and Haas will cooperatively market products to the KSA, GCC, wider Middle East, Asia and European regions.
TSOC is comprised of Tasnee, one of the largest private industrial companies in Saudi Arabia, and Sahara Petrochemical, a publicly traded Saudi joint stock company.
“We are pleased to be able to form this partnership with TSOC,” said Raj Gupta, chairman, president and CEO of Rohm and Haas. “These are well-known and highly regarded firms,” he added.
