SABIC partners with SK Global Chemical for high performance PE products

SABIC and the Korean petrochemical company, SK Global Chemical, signed a 50-50 joint venture agreement in Seoul, South Korea, on May 26 for a total investment of US$ 595 million to manufacture a range of high-performance polyethylene products using SK’s cutting edge Nexlene solution technology. The agreement was signed by Mohamed Al-Mady, SABIC Vice Chairman and CEO, and Ja-Young Koo, SK Innovation Vice Chairman and CEO, and is subject to regulatory approval.

The joint venture, which is located in Singapore, is expected to operate a series of manufacturing plants, the first of which was recently completed by SK Global Chemical at its complex in Ulsan, South Korea, with an expected annual capacity of 230,000 tons. The plants will produce metallocene linear low density polyethylene, polyolefin plastomers and polyolefin elastomers that will meet the growing needs of diverse industries such as advanced packaging, automotive,  healthcare, footwear and electrical & lighting.

A second plant is planned for Saudi Arabia. Over time, production bases will be established worldwide.

The joint venture marks the second instance in which SABIC is investing in manufacturing capability in the Far East after its successful partnership with the China Petrochemical Corporation (Sinopec). SK Global Chemical is a pioneering petrochemical company in Korea, being the first in the country to build a naphtha cracking facility in 1972. Through continuous facility investment, R&D and technological improvement, the company has maintained its position as the leader of the petrochemical industry in Korea.