Minister of Commerce and Industry Dr Hashem Yamani has approved the establishment of the Yanbu National Petrochemicals Company (YANSAB).
Petrochemical giant Saudi Basic Industries Corporation (SABIC) announced in November 2005 that would launch a $533 million initial public offering (IPO) in YANSAB by early this year. SABIC said it would offer investors a 35 percent share in YANSAB, retain a 55 percent stake and offer the remaining ten percent to partners in two other subsidiaries, Ibn Rushd and Taif. Only Saudi investors are eligible to subscribe to IPOs in the Kingdom.
YANSAB – located in the industrial city of Yanbu on the Red Sea coast – will produce four million tons per year of ethylene, propylene, polyethylene and other petrochemicals. It is due to start production in 2008.
The company will be managed by a seven-member board of directors to be appointed by the company’s general assembly for a period of three years.
Its establishment comes within the framework of Kingdom’s policy to broaden and diversify its economic base and to encourage the private sector.