Hanwha forms petrochemical joint venture in Saudi Arabia

SEOUL, July 13 (Yonhap) -- South Korean chemicals maker Hanwha Chemical Corp.
said Monday it has set up a petrochemical joint venture with Saudi International
Petrochemical Co. in the world's largest producer of crude oil.

Hanwha will invest US$900 million in the venture to build a petrochemical plant
in the industrial zone of Jubail in Saudi Arabia, the South Korean company said
in a statement.
The Saudi company, known as Sipchem, will own a 75-percent stake in the venture
and Hanwha will hold the remaining 25-percent stake, according the statement.
Hanwha didn't say how much Sipchem will spend for the venture.
The new plant will have an annual production capacity of 200,000 tons of
ethylene-vinyl acetates and 125,000 tons of polyvinyl acetates when it starts
production in 2014, the statement said.
Hanwha expected the new plant to help it generate $800 million in sales a year.
In the statement, Hanwha Chemical Chief Executive Officer Hong Ki-joon said the
joint venture would level up the company's status in the global petrochemical
industry.
(END)