Saudi Industrial Investment Group - Projects >National Petrochemical Company (Petrochem) 1/1/19, 6'50 AM

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National Petrochemical Company (Petrochem) Print

National Petrochemical Company (Petrochem)

Petrochem a Joint Stock Company is currently owned 100% by the Saudi Industrial
Investment Group (SIIG), 16.25% by Public Pension Agency, 16.25% by General
Organization of Social Insurance, and the remaining by the Public. Petrochem was
established on 08 RABI’1/1429H corresponding to (16/03/2008) as a joint stock
Saudi Company registered in Riyadh, Kingdom of Saudi Arabia, under the
Commercial Registration number 1010246363 dated 08 RABI’1/1429H
corresponding to (16/03/2008). Its Headquarter in the city of Riyadh, with a paid in
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Saudi Industrial Investment Group - Projects >National Petrochemical Company (Petrochem) 1/1/19, 6'50 AM

capital of 4,800 Million Saudi Riyals. The Company (Petrochem) activity is based
on development and establishment, operation and management and maintenance of
petrochemical factories, gas, petroleum and other industries, wholesale and retail
trade in material and petrochemical products and its derivatives. Currently,
Petrochem activity covers investing in its subsidiaries, Saudi Polymers Company
(owned 65% by Petrochem), which produces petrochemical products, and Gulf
Polymers Distribution Company (owned 65% by Petrochem), which distributes
Saudi Polymers Company products.

Saudi Polymers Company SPCo:

Saudi Polymers Company is a joint venture limited liability company with a share
capital of SAR (4,800) Million and commercial registration number 2055008886
issued in Al-Jubail on 29/11/1428H, corresponding to 9/12/2007, located in Al-
Jubail Industrial City. Petrochem owns 65% of SPCo and the remaining 35% is
owned by Arabian Chevron Phillips Petrochemical Company Ltd. SPCo started its
commercial production in the last quarter of 2012, and produces the materials
below:

Project Description:

The Saudi Polymers Project utilize an ethane / propane steam cracker to process 60
million SCFD of ethane and 40 thousand barrels per day of propane, to produce
1220 KTA of ethylene, and 440 KTA of Propylene. These products used for the
derivative units.

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Saudi Industrial Investment Group - Projects >National Petrochemical Company (Petrochem) 1/1/19, 6'50 AM

Products and Applications:

High Density Polyethylene (HDPE)

The market for HDPE can be divided into eight application areas: film, fiber, blow
molding, injection molding, pipe and conduit, rotomolding, other extrusion, and
miscellaneous applications. HDPE is stiffer than the other polyethylenes, and thus
is primarily used in molding applications, which account for approximately half of
the global HDPE market.

Blow molding applications include storage tanks, containers and drums, technical
applications in fuel tanks for the automotive sector, as well as intermediate bulk
containers. Injection molding applications cover a wide range of consumer articles
and household items.

Polypropylene (PP)
Polypropylene is one of the plastic industry most versatile, low-cost polymers. PP
is achieving a portion of its demand growth by displacing other polymers. This has
been especially true for such applications as polystyrene in disposable utensils,
sheet extrusion/thermoforming in soda straws. Its higher heat resistance has gained
limited acceptance in microwave food packaging and dishwasher safe products.

Polystyrene (PS)
PS is a versatile polymer that is used in applications ranging from disposable
packaging to housings for electronic appliances. There are two main types, known
as general purpose polystyrene and high-impact polystyrene. GPPS is the more
widely used of the two, generally favored for its ease of processing, and used in a
very wide range of generally low- specification applications. HIPS contains a small
proportion of polybutadiene, which is a type of synthetic rubber, and improves the
strength and impact resistance of the resin. HIPS is used for housings of computer
monitors, televisions, etc.

Hexene-1

Hexene-1 is a comonomer utilized in the production of polyethylene to improve

product quality. The Hexene-1 market is dominated by polyethylene production,

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Saudi Industrial Investment Group - Projects >National Petrochemical Company (Petrochem) 1/1/19, 6'50 AM

which accounts for close to 90% of its demand; this is focused mainly on LDLPE.
Other applications, including plasticizers, are forecast to grow at a lower rate than
polyethylene. Consequently, polyethylene growth will continue to be the driver
behind 1-hexene growth.
Hexene-1 based polyethylene is a high performance grade of polyethylene, with
production dominant in North America. Production of Hexene-1 grade,
Polyethylene is expected to grow in the Middle East and Asia.

The SCP, JCP and Saudi Polymers facilities are operating as integrated units, to
ensure an efficient, low cost manufacturing operation capable of competing in
world markets and providing the foundation for future capital investments. Even
though any of the three projects, SCP, JCP and Saudi Polymers, could stand on its
own in terms of feedstock supply and product marketing, the relative economics are
enhanced via operational and common facilities integration. A summary diagram
depicting the integration of SCP, JCP and the Saudi Polymers Project is shown
below:

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Saudi Industrial Investment Group - Projects >National Petrochemical Company (Petrochem) 1/1/19, 6'50 AM

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