Saudi Kayan Petrochemical, a unit of Saudi Basic Industries Corp, signed a SR488 million ($130 million) contract with China's Sinopec to build a natural alcohol plant in Saudi Arabia, Kayan said on Tuesday.

'Kayan signed on Monday a contract to build a natural alcohol plant (detergents) with China's Sinopec... The production capacity of the plant will be 50,000 tonnes annually and is expected to start during the second half of 2013,' Kayan said in a statement.

Sabic owns a 35-per cent stake in Kayan. – Reuters