SABIC said it signed an agreement with the Japan Saudi Arabia Methanol Company (JSMC) to raise its stake in renew the JV partnership in Saudi Methanol Company (Ar-Razi) for another 20 years.
JSMC will pay more than 5 billion Saudi riyals to SABIC for renewing the joint venture partnership, which SABIC will use, in part or whole, to finance refurbishment of Ar-Razi’s existing methanol plants or set up new ones, SABIC said in a statement.
Under the agreement, which was approved by regulatory bodies, SABIC will raise its stake in Ar-Razi to 75 percent, reducing JSMC’s shareholding in Ar-Razi to 25 percent. SABIC will also become an equal co-owner with JSMC.
"Ar-Razi is the first joint venture in SABIC's history and one of the most successful partnerships that the company has had over 40 years,” said Yousef Al-Benyan, SABIC vice chairman and CEO.
“Renewing the partnership for more 20 years is proof of its success and contribution to the Saudi-Japan strategic cooperation, in line with Vision 2030,” he added.
Ar-Razi was set up in 1979, as a 50/50 joint venture between SABIC and JSMC with the aim of developing, establishing, owning and operating a methanol complex.