DUBAI, (Reuters) – Saudi Arabia’s National Industrialization Co. 2060.SE has begun talks with banks to secure financing for a $1.5 billion to $2 billion acrylic acid plant, according to a report.
HSBC, Tasnee’s financial advisor, is talking to local banks while discussions are also ongoing with export credit agencies in Korea and Germany, Middle East Economic Digest said on its website.
The firm will seek financial committments in the first half of 2011, the London-based magazine said. It is looking for a mix of U.S. dollar and Saudi riyal loans.
The acrylic acid plant is expected to cost 4 billion Saudi riyals ($1.1 billion) and start production of about 230,00 tonnes a year by the first quarter of 2013.
In October, a consortium of South Korea’s Samsung Engineering Co and Germany’s Linde won an early construction deal for the plant.
Saudi subsidiaries of Tasnee Sahara Olefins Co (TSOC) – a joint-venture of Tasnee 2060.SE and Sahara Petrochemicals Co 2260.SE – own 75 percent of the complex and 25 percent belongs to U.S.-based Rohm and Haas, recently bought by Dow Chemical Acrylic acid is used as a feedstock for its water-based acrylic products used to manufacture detergent additives, paints, coatings and adhesives among other products.