Sabic plans to expand its affiliate Arabian Industrial Fibers (Ibn Rushd), its chief executive said on Sunday.

Sabic, the world's top chemical company by market value, holds 47.2% of Ibn Rushd, according to its 2008 annual report. Ibn Rushd's complex in Yanbu, on Saudi Arabia's Red Sea coast, produces aromatics, purified terephthalic acid (PTA), which is used in making polyester, and polyester staples.

After the expansion, Ibn Rushd's PTA capacity would rise to 700,000 tpy from 350,000 tpy currently, Chief Executive Mohamed al-Mady said. The expansion would also increase output capacity of polyethylene terephthalate (PET) to 750,000 tpy from 330,000 tpy as well as boost aromatics capacity to 600,000 tpy from 350,000 tpy, he said.

"We are doing this (expansion) to improve the economic basis of the project," Mady told Reuters. "We are working on the engineering studies now and we will go to the market (for bids) afterwards."

The engineering work is being handled by a number of firms as various technologies would be implemented.

State-controlled Sabic plans to boost total production to 130 million tons of petrochemicals by 2020, up from 56 million tons in 2008. It is focusing now on growing its business in the kingdom, China and the Far East, Mady said in December.

Sabic benefits from access to cheap energy feedstock in the world's top oil exporter, giving it a competitive advantage over global rivals.