The Saudi Basic Industries Corp. (SABIC) and the Saudi International Petrochemical Co. (Sipchem) have signed a MoU for setting up new projects in Jubail. The two companies will utilize their existing infrastructure and manufacturing capacity to process Saudi Aramco feedstock allocated by the Ministry of Petroleum and Mineral Resources for the new projects. The projects include seven plants with an estimated investment of USD 3.2 billion which SABIC will construct to produce 250,000tns of methyl metha acrylate, 30,000tns of poly methyl metha acrylate, 200,000tns of acrylonitrile, 50,000tns of polyacrylonitrile, 50,000tns of polyacetyl resins, 3000tns of carbon fiber and 40,000tns of sodium cyanide annually. SipchemSipchem will build two plants for an estimated cost of USD 810 million for the production of 125,000tns of poly vinyl acetate and 200,000tns of ethylene vinyl acetate annually. The plants are expected to go on-stream by mid-2013. According to the MoU, a SABIC manufacturing affiliate will crack the feedstock allocated to SipchemSipchem and also provide it with ethylene. One of SipchemSipchem’s manufacturing companies will supply carbon monoxide to SABIC for the production of MMA. The two companies will move forward on these projects after the completion of economic studies and legal procedures.