Kemya Plant to Affect Sabic, Exxon Earnings From Mid-2015
Stock Chart for Saudi Basic Industries Corp (SABIC)
Al-Jubail Petrochemical Co., known as Kemya, expects to have an “immediate positive” impact on the earnings of Saudi Basic Industries Corp. (SABIC) and ExxonMobil Corp. (XOM) when their venture starts production from a rubber plant.
“We expect an immediate positive contribution to the results of Kemya, Sabic and ExxonMobil from the moment of startup,” Jacobus Van Haasteren, executive vice president of performance chemicals at Sabic, told reporters in Riyadh today. Production begins in the second half of 2015.
The $3.4 billion specialty-elastomer plant on the kingdom’s Persian Gulf coast will produce 400,000 tons of rubber product a year that will be exported to Asia and the Middle East and sold in Saudi Arabia. The venture between Sabic and ExxonMobil Chemical Co. awarded engineering, procurement and construction contracts to Daelim Industrial Co. in June. Technip SA (TEC) and Tecnicas Reunidas SA (TRE) will build the factory.
The companies aren’t concerned about the project’s financing, said Sabic Chief Executive Officer Mohamed Al-Mady.
“We are two strong companies, and we have many ways to finance our project,” Al-Mady said at the press conference. “It will be announced as soon as we are ready for financing.”
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