Oscar
11-11-2006, Sat 12:38 PM
14:30 10Nov2006 RTRS-SABIC says plans China petrochem venture
HONG KONG, Nov 10 (Reuters) - Saudi Basic Industries Corp. (SABIC) <2010.SE>, the world's most profitable petrochemical firm, said on Friday that it intends to form a joint venture in China with possible investment of up to $5 billion.
The company is keen on building a manufacturing base in China, a market where it has been selling products for the past 28 years, Mutlaq H. Al-Morished, chief financial officer of the company told a news conference.
"We are looking at building facilities in China when the time is right," he said.
He said SABIC was in talks with a number of private and government groups for a joint venture and was eyeing eastern China as a possible location for the unit.
Al-Morished said it could be a $3 billion to 5 billion ethylene cracker with facilities to manufacture downstream products like polyethelyne and glycol, but there were no concrete plans as yet.
SABIC officials are in Asia where they are making presentations to potential investors for a debut, benchmark-sized eurobond issue, depending on the market response.
Benchmark-sized euro bonds usually total at least 500 million euros ($636 million).
Netherlands-based plastics and commodity chemicals producer SABIC Europe, SABIC's fully owned unit, is holding roadshows in Asia and Europe from Nov. 9 to Nov. 17, for selling the bond whose tenor would be between seven and ten years.
HSBC and JP Morgan Securities Ltd. are joint bookrunners for the deal.
The proceeds will be used for general corporate purposes including SABIC's recent acquisition of Huntsman Petrochemicals (UK) Ltd.
In September, SABIC agreed to buy the European bulk chemicals unit of U.S.-based Huntsman Corp <HUN.N> for $700 million, saying the assets fit well with its other European operations and would allow it to gain scale on the continent.
((Reporting by Umesh Desai, editing by Quentin Bryar; Reuters Messaging: umesh.desai.reuters.com@reuters.net (umesh.desai.reuters.com@reuters.net); +852 2843 6935))
Keywords: CHEMICALS SAUDIARABIA SABIC
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Friday, 10 November 2006 14:30:00RTRS [nHKG368122] {EN}ENDS
HONG KONG, Nov 10 (Reuters) - Saudi Basic Industries Corp. (SABIC) <2010.SE>, the world's most profitable petrochemical firm, said on Friday that it intends to form a joint venture in China with possible investment of up to $5 billion.
The company is keen on building a manufacturing base in China, a market where it has been selling products for the past 28 years, Mutlaq H. Al-Morished, chief financial officer of the company told a news conference.
"We are looking at building facilities in China when the time is right," he said.
He said SABIC was in talks with a number of private and government groups for a joint venture and was eyeing eastern China as a possible location for the unit.
Al-Morished said it could be a $3 billion to 5 billion ethylene cracker with facilities to manufacture downstream products like polyethelyne and glycol, but there were no concrete plans as yet.
SABIC officials are in Asia where they are making presentations to potential investors for a debut, benchmark-sized eurobond issue, depending on the market response.
Benchmark-sized euro bonds usually total at least 500 million euros ($636 million).
Netherlands-based plastics and commodity chemicals producer SABIC Europe, SABIC's fully owned unit, is holding roadshows in Asia and Europe from Nov. 9 to Nov. 17, for selling the bond whose tenor would be between seven and ten years.
HSBC and JP Morgan Securities Ltd. are joint bookrunners for the deal.
The proceeds will be used for general corporate purposes including SABIC's recent acquisition of Huntsman Petrochemicals (UK) Ltd.
In September, SABIC agreed to buy the European bulk chemicals unit of U.S.-based Huntsman Corp <HUN.N> for $700 million, saying the assets fit well with its other European operations and would allow it to gain scale on the continent.
((Reporting by Umesh Desai, editing by Quentin Bryar; Reuters Messaging: umesh.desai.reuters.com@reuters.net (umesh.desai.reuters.com@reuters.net); +852 2843 6935))
Keywords: CHEMICALS SAUDIARABIA SABIC
For Related News, Double Click on one of these codes:
[E] [U] [MD] [GFN] [PSC] [RNP] [DNP] [PCO] [ASIA] [EMRG] [CHE] [CN] [HK] [SA] [MEAST] [LEN] [RTRS] [2010.SE] [HUN.N]
For Relevant Price Information, Double Click on one of these codes:
<2010.SE> <HUN.N>
Friday, 10 November 2006 14:30:00RTRS [nHKG368122] {EN}ENDS