Proposed construction of new aluminum factory
Saudi Organometallic Chemicals Company , a joint venture equally owned by Albemarle Netherlands B.V., and SABIC affiliate, SPECIALTY CHEM , initiate the construction of a new aluminum alkyls manufacturing facility.
Saudi Organometallic Chemicals Company (SOCC), a joint venture equally owned by Albemarle Netherlands B.V., a subsidiary of Albemarle Corporation (NYSE: ALB) , and SABIC affiliate, SPECIALTY CHEM (Saudi Specialty Chemical Company), held a groundbreaking ceremony on September 18, 2011 to initiate the construction of a new aluminum alkyls manufacturing facility in Jubail, Saudi Arabia.
Representatives from Albemarle, Samsung Engineering, SABIC, SOCC and SPECIALTY CHEM as well as a number of regional customers attended the ceremony. During the celebration, executive leaders from each company discussed the regional economic benefits that are expected as a result of the project. The facility is projected to create a number of new jobs, 80% of which will be reserved for Saudi nationals in accordance with the country's Saudization policy.
During his opening remarks, Koos Van Haasteren, Executive Vice President of SABIC Performance Chemicals, expressed his enthusiasm for the project and for the opportunity to collaborate with the partnering companies, "We are proud of our partner, Albemarle Corporation, which has a proven track record of maintaining in-depth relationships with customers and a good record in social responsibility," said Van Haasteren. He also praised Samsung's commitment to delivering the project safely, on time, and on budget.
"Albemarle is delighted to join SABIC in a venture to provide key catalyst raw materials to our customers in one of the highest growth regions in the world for petrochemical production," said John Steitz, Albemarle's Chief Operating Officer.
Khalil Ibrahim Ibn Salamah, SOCC's Chairman of the Board, described the project as a natural extension of the growth being experienced by the regional petrochemical industry. He also expressed his commitment to recruiting and training a local workforce to help operate the facilities.
The construction phase of the new project, which is the first of its kind in the Middle East, is scheduled for completion in the fourth quarter of 2012. The facility will manufacture 6,000 metric tons/yr of tri-ethyl aluminum (TEA), a Ziegler Natta co-catalyst used in the plastics industry. The plant is being built at this location to bring TEA production closer to the end-users, thus supporting growing regional demand.
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