Petrokemya, a subsidiary of Saudi Basic Industries Corporation (Sabic) has signed an initial deal with Spanish oil engineering company Tecnicas Reunidas to build a petrochemical plant in the Saudi Arabia’s industrial city of Jubail.

The long-awaited project for the acrylonitrile butadiene styrene (ABS) plant, is estimated to cost $561 million and is expected to start initial operations in the fourth quarter of 2014, a statement from Sabic said.

It did not provide the value of the contract with Tecnicas Reunidas, and said it would finance the project with its own resources.

The project would have a production capacity of 140,000 tonnes per year of the ABS product, which is used by the automotive industry, the statement said.

Arabian Petrochemical, known as Petrokemya, is fully owned by Sabic. – TradeArabia News Service