The Saudi Basic Industries Corporation
(SABIC) has signed a three-year deal with South Koreaís Huvis to
supply 200,000 tons of mono-ethylene glycol (MEG) annually, the
company announced yesterday.
Muhammad H. Al-Mady,
vice chairman and managing director of the Saudi Basic Industries Co.,
who signed the agreement in Seoul, said the deal would make Huvis one
of SABICís largest international customers.
president of SABICís Intermediates Group, also attended the signing
ceremony at the Huvis headquarters.
The deal will make up
more than half of Huvisí MEG requirements, Al-Mady said in the
statement. ďIn an environment of increasing global competition, the
agreement would strengthen SABICís presence in Asia, particularly
the Korean market,Ē he said.
largest manufacturer of polyester products, was created last year
through the merger of the polyester divisions of SK Chemical Inc. and
Samyang Corp. SABIC supplies 1.5 million tons of MEG to world markets
through affiliates, Eastern Petrochemical Company (Sharq) and Saudi
Yanbu Petrochemical Company (Yanpet), which have a combined production
capacity of 2.3 million tons, both joint ventures with a Japanese
consortium and US ExxonMobil.
Sharq and Yanpet,
based in Jubail and Yanbu industrial cities respectively, have five
production plants. Two more plants are under construction and will be
on stream in 2004 and 2005.
SABICís profit in
the first quarter of this year plunged 21.6 percent to $193 million
from the same period last year, due to an increase in financing costs
and a general decline in prices. It has a paid-up capital exceeding $4
billion and total assets of more than $21 billion, and operates 18
giant factories in Saudi Arabia.