Saudi Basic Industries Corp (SABIC) signed Monday an agreement with the Japan Saudi Arabia Methanol Company (JSMC) to renew the partnership in the Saudi Methanol Company (Ar-Razi) for another 20 years.
This agreement was signed to expand their successful partnership that lasted for many years during which it transferred its technology and contributed to SABIC's global leadership in the petrochemical sector.
It comes in the framework of SABIC’s strategy to develop its relations with global partners and enhance its leading role in the petrochemical industry, especially methanol.
Under the agreement, SABIC will raise its stake in Ar-Razi to 75 percent, reducing JSMC’s shareholding in Ar-Razi to 25 percent.
JSMC will pay more than SR5 billion to SABIC for renewing the joint venture partnership, which the latter will use, in part or whole, to finance refurbishment of Ar-Razi’s existing methanol plants or set up new ones.
By concluding the agreement, SABIC will become an equal co-owner with JSMC in a new, highly efficient methanol production technology, which will be freely commercialized inside the Kingdom or abroad.
“Ar-Razi is the first joint venture in SABIC’s history and one of the most successful partnerships that the company has had over 40 years,” said Yousef al-Benyan, vice-chairman and CEO of SABIC.
“Renewing the partnership for more 20 years is proof of its success and contribution to the Saudi-Japan strategic cooperation in line with the Kingdom’s Vision 2030,” he added.
Ar-Razi was established on November 24, 1979, as a 50/50 joint venture between SABIC and JSMC with the aim of developing, establishing, owning and operating a methanol complex.
