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PMD in line with Kingdom of Saudi Arabia's policy to further encourage private sector investments in the Kingdom, pursued the implementation of a world scale integrated petrochemical complex which includes inter alia 1.35 MTA ethylene plant, polyethylene, polypropylene, ethylene glycols, methylamines and derivatives, ethanolamine, ethoxylates, cumene, phenol, bisphenol-A and polycarbonate plants together with common facilities and utilities (Project). The feedstock for the Project, ethane and butanes will be supplied by Saudi Aramco. The Project has received the largest feedstock allocation ever granted to any project in Saudi Arabia. The Project is expected to produce in aggregate more than 6 million TPA of petrochemical products. The marketable products are largely intended for exports to the Asian and European markets, with certain products catering to local consumption needs.
The Project complex involves 16 process licences for its various process plants and also introduces manufacture of new products in the Middle East like methylamines and derivatives, ethanolamine, ethoxylates, bisphenol-A and polycarbonates.
The Project will have a total cost of US$10 billion and is one of the largest integrated grass-root petrochemical projects in the world. The Project is currently being constructed on 2.2 million square meters area at Al-Jubail Industrial City on the east coast of Saudi Arabia.
PMD had earlier formed a special purpose company in 2005 named Al-Kayan Petrochemical Company (Kayan), a Saudi joint stock company with equity of US$ 853 million, to further own and develop the Project. PMD is a major shareholder in Kayan.
In April 2007 Kayan signed a joint venture agreement with the Saudi Arabian major, Saudi Basic Industries Corporation (Sabic) based at Riyadh, to be its joint venture partner in the Project. Upon concluding the joint venture agreement a joint stock company named Saudi Kayan Petrochemical Company (Saudi Kayan) was formed with an equity of Saudi Riyals 15 billion i.e., US$ 4 billion, to act as the Project company.
Kayan holds 20% and Sabic 35% equity in Saudi Kayan with the remaining equity i.e., US$ 1,800 million raised through an initial public offering (IPO) during second quarter of 2007 in Saudi Arabia. The Saudi Kayan IPO was one among the largest in the Arab world.
The Project is currently implemented under Saudi Kayan at the primary industrial area of Al-Jubail industrial city.

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