Sabic and SK Global Chemical (Seoul) said on Sunday that they have finalized an agreement to form an equally owned joint venture, Sabic SK Nexlene Co. (Singapore), which will build Nexlene polyethylene (PE) production facilities using SK's metallocene technology. The deal was signed on Friday in Seoul by SK Global Chemical CEO Cha Hwa-youp and Sabic's executive v.p./polymers Abdulrahman Al Fageeh. The jv plans to invest $640 million in the technology and plant construction, to be covered by self-funding and commercial loans, the companies say.
SK Global Chemical's Nexlene plant at Ulsan, South Korea with an annual production capacity of 230,000 m.t./year has been transferred to the jointly owned company. The jv will also build Nexlene PE facilities in Saudi Arabia and in other parts of the world. The technology produces linear low-density polyethylene, polyolefin plastomers and polyolefin elastomers, and caters to the advanced packaging, automotive, healthcare, footwear and electrical and lighting sectors. It offers impact strength, enhanced toughness, transparency and improved organoleptic properties. The technology competes with those owned by Dow Chemical, ExxonMobil Chemical and Mitsui Chemicals.
Sabic and SK Global Chemical announced in May 2014 their intention to form a Nexlene PE production and marketing joint venture.
By Natasha Alperowicz
Source: Chemical Week
© 2020 by PACIFIC HIGH TECH LTD.