A year after the initial plans were announced, Saudi Arabian petrochemicals giant SABIC and Korean petrochemical manufacturer SK Global have completed the establishment of a 50:50 joint venture, SABIC SK Nexlene Company, to produce polyethylene products.

Total investment in the new Singapore-based company will be about $640 million.

As part of the deal, the Korean company is contributing its Nexlene technology arm to the joint venture. The technology will be used in the first facility to be incorporated in the joint venture – a 230,000 t/y metallocene LLDPE, polyolefin plastomer and polyolefin elastomer plant at Ulsan, originally built by SK subsidiary Korea Nexlene Company (KNC).

The partners plan to set up another plant in Saudi Arabia, as well as other global production facilities in due course, said Abdulrahman Al Fageeh, executive vice president of SABIC’s Polymers unit.

“By growing our presence in Korea we are opening up new markets globally and reinforcing our position as a global leader – a major goal of our 2025 strategy,” said Yousef Al Benyan, the acting vice chairman and CEO of SABIC.