Advanced Petrochemical Inks $191M Deal with Korean Firm for Isopropanol Factory in Saudi Arabia

Advanced Petrochemical Company (ADVANCED) disclosed on Sunday the signing of engineering, procurement, and construction contracts to establish an isopropanol factory in Jubail Industrial City, in collaboration with SGC eTEC E&C Co., Ltd and SGC Arabia Co. Ltd. The venture, leveraging manufacturing technology from the German company Thyssen Krupp Audi, boasts a valuation exceeding SAR 700 million (USD 191,255,000).

Chairman of the Board of Directors of ADVANCED and the Advanced Polyolefins Industry Company, Khalifa bin Abdul Latif Al-Mulhem, affirmed that the project is slated for completion within 32 months, anticipating commercial operations to commence by the first quarter of 2026.

Al-Mulhem underscored the significance of this project in bolstering the Kingdom’s petrochemical industries sector and supporting ADVANCED’s strategic growth trajectory. He highlighted the company’s commitment to maximizing local investments, aligning with the objectives of Vision 2030 and receiving backing from the Ministry of Energy and other government entities fostering industrial development.

The factory marks a pioneering endeavor in the Kingdom and the Middle East, boasting an annual production capacity of 70 thousand tons of isopropanol. This milestone signifies a significant stride towards product diversification for ADVANCED and enriching the array of specialized chemicals in the region’s petrochemical industry.

Al-Mulhem emphasized the global importance of isopropanol across various industrial sectors, ranging from healthcare to electronics, underlining its strategic relevance to the Kingdom’s economic agenda.

The project’s financing, Al-Mulhem noted, will be facilitated through a combination of loans arranged and secured by APOC and operational cash flow.

Regarding market dynamics, Al-Mulhem outlined plans to cater to local demand while tapping into global markets, particularly in the Gulf region, Southeast Asia, Turkey, and India. The factory’s capacity is estimated at 70 thousand tons annually, with ADVANCED eyeing a 3% share in the global market.

Moreover, the project is set to create employment opportunities and integrate with existing facilities within the Advanced Group, augmenting operational efficiency and competitiveness. Al-Mulhem reiterated the company’s commitment to Saudization efforts, highlighting the employment and training of competent Saudi youth.

In alignment with Vision 2030, ADVANCED aims to capitalize on opportunities, diversify its product portfolio, and maximize the value of its offerings, with isopropanol identified as a key component in advancing the national industry and enhancing logistical capabilities.