24  November  2017

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 Infopetro -> Industry in Focus


Pan-Asia's Saudi Project to Break Ground Next March

  06/27/2017

Pan-Asia PET Resin (Guangzhou) Co, one of the top three

polyethylene terephthalate bottle suppliers in China,

anticipates its $3.8 billion petrochemical project in

Saudi Arabia will break ground next March and the first

phase of the complex will become operational in August

2020.

The project, to be located in Jazan Economic City in

southwestern Saudi Arabia, includes facilities for the

annual production of 2.5 million metric tons of purified

terephthalic acid, 1 million tons of PET, 200,000 tons of

engineering plastic, 200,000 tons of thin film, 200,000

tons of polyester fiber and 5,000 tons of heavy equipment,

said Lin Wencai, vice-president of Singapore-listed Full

Apex (Holdings), Pan-Asia's parent company.

The project will benefit from its proximity to raw

materials£­with a large para-xylene facility operating in

Jazan Economic City£­and to the Middle Eastern and North

African markets, with Middle East alone importing 3

million tons of PTA annually, mainly from East Asia, Lin

said, adding that Saudi Arabia currently has no PTA

production.

It will also enjoy the advantage of much lower taxes and

land and energy costs, including natural gas, diesel,

gasoline and electricity, although construction and labor

costs are much higher than at its operations in China, Lin

said.

Lin said that the project is in line with Saudi Vision

2030, a blueprint announced by the government of Saudi

Arabia last May, which aims to reduce the Saudi economy's

dependence on oil and turn the kingdom into a global

investment powerhouse.

In March, Pan-Asia and Saudi Arabia's Royal Commission for

Jubail and Yanbu signed an agreement allocating industrial

land to Jazan petrochemical plant, and fundraising support

is available from the Saudi Industrial Development Fund.

Pan-Asia's project in Jazan is estimated to create around

2,500 jobs, Lin said.

In a related development, the Royal Commission for Jubail

and Yanbu and Saudi Aramco agreed last year to cooperate

with Yinchuan Yucheng Investment Co and Guangzhou

Industrial Development Group Corp to invest in Jazan

Economic City and other transport and logistics hubs in

the country.

The project will be the first petrochemical project wholly

owned by a foreign investor in Saudi Arabia, which would

be a milestone, said Du Qunlong, Asia-Pacific regional

director of performance technologies at Invista, a US-

based chemicals company.

The raw materials for the project can be locally sourced

and raw material transport costs reduced, he said.



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