The Saudi Basic Industries Corporation (SABIC) - the world’s fourth largest petrochemical firm - signed on Tuesday a memorandum of understanding with the Saudi Investment Recycling Company (SIRC) to assist the latter in setting up the first chemical recycling project to enable the use of recycled plastic feedstock.
The memorandum included a feasibility study on building a chemical recycling plant in the Kingdom to convert mixed plastic waste into pyrolysis oil.
Yousef Al-Bunyan, SABIC Vice Chairman and CEO, said that the strategic cooperation would enhance the company’s efforts to contribute to achieving the goals of waste management in the Kingdom, in line with Saudi Vision 2030.
For his part, Eng. Ziyad Al-Shiha, CEO of SIRC, said that the new project would boost the Kingdom’s circular economy and seek to reduce global warming emissions, protect the environment and provide a sustainable future. He stressed that cooperation efforts and joint experiences between the two sides would ultimately achieve the success of the project and make it a model in the Middle East.
Within the framework of the MoU concluded between the two sides, SIRC will provide, collect, sort and supply feedstock materials from municipal solid waste to the chemical recycling facility. The two parties will also evaluate the feasibility study of the project, the proposed cooperation and job creation opportunities.
Meanwhile, Reuters reported that SABIC has selected HSBC and Morgan Stanley to work on the planned initial public offering (IPO) of its specialty chemicals business.
The agency quoted sources familiar with the matter as saying that the specialty chemicals business brought in about $2 billion in sales each year for SABIC, which is controlled by state oil giant Saudi Aramco.
SABIC hired Saudi investment bank NCB Capital earlier this year to work on the public share sale, which sources said could raise several hundred million dollars, according to Reuters.
