Joint stock company Saudi Industrial Investment Group, or SIIG, said Monday it has established a joint venture company dedicated to producing downstream petrochemical products.
The venture, called Petrochemical Conversion Company, or PCC, has been formed under a 50:50 partnership with the Arabian Chevron Phillips Petrochemical Company, the company said in a statement posted on the Saudi stock exchange Tadawul.
A total of $2 billion will be invested in PCC over the next two years.
One of the first projects for the new company will be a nylon manufacturing plant, SIIG said. In addition, other downstream petrochemical plants will also be established under the joint venture, the company added.
An industry source said that the new plants are likely to be established in the Saudi industrial city of Jubail.
Production from these projects is expected to start in 2013, SIIG said without specifying the month of startup. The company didn't disclose the names of other petrochemical products it plans to manufacture and their planned capacities.
