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Saudi state-led Saudi petchems giant Sabic announced on 13 March that it will merge operations of its 4mn t/y Sadaf subsidiary into its 5.2mn t/y Petrokemya unit to “create a more efficient entity” and unlock value from “the synergies between the two companies’ products streams.”
The two firms’ production complexes are close together, although not adjacent, in the industrial zone at Jubail on the Saudi Gulf coast.
Petrokemya’s products include ethylene and propylene and their derivatives as well as acrylonitrile butadiene styrene (ABS) and polyvinyl chloride (PVC). Sadaf products include ethylene as well as styrene and ethylene dichloride, which are respectively used to make ABS and PVC. Sabic aims to complete the merger during the second half of 2019. Sabic bought 50% partner Shell out of Sadaf for $820mn in 2017, terminating a joint venture deal due to end in 2020 ( MEES, 27 January 2017 ). While Sabic has been streamlining its operations in recent years to boost profits, the company has lately begun grouping less strategic assets ahead of a planned $70bn takeover by state petroleum firm Aramco, as if readying them for sale ( MEES, 1 February ). (CONTINUED - 182 WORDS)