Further to the previous announcement, which was published in Tadawul on Dec 26, 2012, Saudi Kayan Petrochemical Company ("Saudi Kayan") announced today (16/6/2013) that it has signed a tolling and processing agreement with Sadara Chemical Company ("Sadara"), Saudi Acrylic Acid Company ("SAAC") and Saudi Butanol Company ("Sabuco"). Sabuco is a special purpose joint venture company established by Saudi Kayan, Sadara, and SAAC for the purposes of owning and funding a butanol production plant ("Butanol Plant").
The tolling and processing agreement governs the terms on which Saudi Kayan, Sadara and SAAC shall supply propylene to the Butanol Plant for conversion into butanol products, and their corresponding rights to offtake such butanol products.
The design capacity of the Butanol Plant, which is scheduled to go on-stream on the first quarter of 2015, is 330,000 metric tons per annum of n-butanol and 11,000 metric tons per annum of iso-butanol.
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