An affiliate of Saudi Basic Industries Corp (Sabic) plans to start a 83,000 tonnes per year oleo-chemical plant by the end 2013, the first in the Middle East to produce chemical products from renewable feedstock.

German Lurgi Gmbh will supply the world's biggest chemical firm by market value the technology and engineering needed for the plant, Sabic said in a statement.

"The feedstock ... is based on natural raw materials from renewable oils such as palm kernel oil and coconut oil," Sabic said.    

The plant will be located at Saudi Kayan Petrochemical Co mega complex which is under construction. The expected production capacity of the oleo-chemicals plant will account for about 2 percent Kayan's total production.

With this plant, Sabic hopes to "meet the ever-increasing demand for our products in the Middle Eastern consumer care industry. Furthermore, the natural alcohol plant allows for new investments in downstream industries in the region."    

The unit's production can be be used in household and laundry products, plasticisers, lube additives, plastic industries, cosmetics and personal care, it added.  -Reuters