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August 17, 2011
Essen/Riyadh. Evonik Industries and Saudi Acrylic Acid Company (SAAC) have established a joint venture called Saudi Acrylic Polymers Company (SAPCo) for the production of superabsorbents. SAAC is a joint venture of the Saudi companies National Industrialization Company (Tasnee) and Sahara Petrochemicals. The production facility with an annual capacity of 80,000 metric tons is scheduled to begin production in late 2013. The total investment will be in the triple-digit million Euro range.
The SAPCo superabsorbent production is part of a new acrylic acid and derivative complex on the Tasnee premises of the Al Jubail chemical park in Saudi Arabia and will benefit from favorably priced propylene from the adjacent cracking facility operated jointly by Tasnee, Sahara, and Lyondell Basell. The EPC-contract will be assigned to Fluor.
Patrik Wohlhauser, the Evonik Executive Board member responsible for the Consumer, Health & Nutrition reporting segment, and Dr. Moayyed I. Al-Qurtas, Deputy Chairman of the Supervisory Board and CEO of Tasnee, signed the corresponding joint venture agreement in Riyadh today. "This is an important step for our Group in the Middle East growth market and will significantly boost our leading position for superabsorbents," said Wohlhauser. Evonik is a leading global producer of superabsorbents, a key basic material for the manufacture of diapers and feminine hygiene products.
The joint venture will be equipped with state-of-the-art Evonik superabsorbent technology and will benefit from the advantageous local source materials supply. The acrylic acid for the production of superabsorbents will come from an adjoining SAMCO facility. SAMCO is a joint venture of SAAC and Dow Chemicals.
"This is the first superabsorbent production plant in the region. We will provide our customers with our usual high-quality, up-to-date technology to serve the growing market of the Middle East. Together with our Saudi partners, we are closing the supply chain from oil to diaper production in Saudi Arabia," noted Claus Rettig, the Head of the Evonik Consumer Specialties Business Unit.
Evonik is the creative industrial group from Germany. In our core business of specialty chemicals, we are a global leader. In addition, it has energy and residential real estate operations. Our performance is shaped by creativity, specialization, reliability and continuous self-renewal. Evonik is active in over 100 countries around the world. In fiscal 2010 more than 34,000 employees generated sales of around €13.3 billion and an operating profit (EBITDA) of about €2.4 billion.
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.