Jiahua Chemicals and and Petro Rabigh discuss cooperation in building specialty chemicals plant

According to multiple media reports, Petro Rabigh has signed a memorandum of understanding with China's Jiahua Chemicals to explore the establishment of a specialty chemicals manufacturing plant in Rabigh. The statement said the plant will focus on the production of specialty chemicals derived from ethylene oxide and propylene oxide, which are essential for the construction and automotive industries.

Petro Rabigh will provide key materials required for the new project, ensuring a stable source of key inputs. The memorandum of understanding will last for 12 months, providing both parties with ample time to conduct a feasibility study and outline the operational framework of the proposed plant.

The collaboration is in line with Saudi Arabia's broader strategy to strengthen domestic specialty chemicals production. The plan aims to reduce dependence on imports while supporting downstream industries related to the construction and automotive sectors. By increasing local manufacturing capabilities, the project is expected to contribute to Saudi Arabia's economic diversification efforts and create jobs.

The project fully utilizes the resources of Petro Rabigh and Jiahua Chemicals' expertise in specialty chemicals and is expected to promote significant progress in the industry. The establishment of the plant will strengthen the local supply chain and meet the growing demand for specialty chemicals, which are essential for a variety of applications in the construction and automotive sectors.

The agreement also highlights the importance of cooperation between local and international companies to achieve Saudi industrial goals. The cooperation with Jiahua Chemicals not only increases the production capacity of Rabigh Refinery and Petrochemical Company, but also promotes knowledge transfer and technology exchange, bringing innovative solutions to the specific needs of the Saudi market.

Rabigh Refinery and Petrochemical Company was established in 2005 as a joint venture between Saudi Aramco and Sumitomo Chemical. The plant is estimated to be worth approximately SAR 16.71 billion, with 25% of the funds coming from the public and the rest being shared equally by Saudi Aramco and Sumitomo Chemical. The plant produces 18.4 million tons of petroleum-based products per year, as well as 2.4 million tons of ethylene and propylene-based derivatives.