SABIC has signed two memoranda of understanding (MoU) with Germany’s Schmid and Saudi organization Riwaq Industrial Development to establish two silicon plants in Jubail Industrial City.

The plants will use Schmid’s redox flow technology to produce silicon for semiconductors, electronics and solar cells. Further details on plant capacities and a timescale for the project, set to cost 1.6 billion Saudi riyals ($427 million), were not given.

SABIC has also committed to another project that will provide the raw materials needed for the silicon venture. An agreement has been made with China’s Pan Asia PET for the project, which will be located in Jazan Industrial City and cost 4 billion Saudi riyals.

The Saudi chemicals giant said it will provide coordination, logistical support, materials, products and technical support under its national initiative known as Nusaned. The program aims to support investors and the development of local industries.

In separate news, SABIC and Saudi Aramco have confirmed the selection of Yanbu as the site for their joint crude oil-to-chemicals complex.

The $20 billion complex is expected to process 400,000 bbl/d of crude oil to produce about 9 million t/y of chemicals and polymers, including butadiene, aromatics, PE, PP and base oils. Start-up is anticipated in 2025.

Earlier this year, the companies awarded contracts to the UK’s Wood Group and US-based KBR. SABIC and Aramco expect to make a final investment decision on the project by the end of 2019.