The Ministry of Commerce yesterday announced the licensing of a new petrochemical company, with a capital of SR3.2 billion [U.S. $0.85 billion]. The Kayan Company, to be headquartered in Riyadh, will invest in the production of chemicals such as ethylene, propylene and ethylene glycol.
Meanwhile, Saudi Basic Industries Corporation (SABIC) has reported net profits of SR 9.84 billion [$2.6 billion] for the first half of 2005, an 84 percent rise over the same period last year. Profits for the first and second quarters of this year were SR 5 billion [$1.35 billion] and SR 4.76 billion [$1.3 billion] respectively. Actual revenues were a record SR 37 billion [$9.87 billion], up from last year’s SR 29 billion [$7.73 billion]. Total production for the first half of 2005 stood at 22.5 million metric tons (MT), a ten percent increase over the previous year, with sales at 17.4 million MT. SABIC expects to reach an annual capacity of 60 million MT by 2008.