Tokyo — SABIC, a global leader in diversified chemicals headquartered in Riyadh, has signed an agreement with the Japan Saudi Arabia Methanol Company (JSMC) to renew the partnership with the Saudi Methanol Company (Ar-Razi) for another 20 years

Under the agreement 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.

JSMC will pay more than US$1.3bn to SABIC for renewing the joint venture partnership, which SABIC will use, in part or whole, to finance the refurbishment of Ar-Razi’s existing methanol plants or set up new ones..

By concluding the agreement, SABIC will become an equal co-owner with JSMC in a new methanol production technology, which will be freely commercialized inside or outside of Saudi Arabia.

“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 established on November 24, 1979, as a 50/50 joint venture between SABIC and JSMC with the aim of developing, establishing, owning and operating a methanol complex. — Agencies