The joint venture between Saudi Basic Industries Corporation and South Korea intends to improve production of innovative chemical goods by increasing the capacity of its factory in Ulsan. As part of the expansion scheme, Sabic SK Nexlene Firm, a joint venture between South Korea’s SK Geo Centric and Sabic, will be established as the largest petrochemicals company in the Middle East and will manufacture materials used in solar panels, automobiles, footwear, and flexible packaging.

Sami Al-Osaimi, Sabic’s vice president of PE and sales and chairman of Sabic SK Nexlene Company, stated, “We have identified a strong trend toward customized and high-performance polyolefins, especially metallocene polyethylene materials, in various important emerging technology industries. He claimed that the increase in plant capacity will provide the company a major competitive edge and operational efficiency to drive the growth of these Nexlene-based materials.

According to the company, this recent development will support Sabic’s 2025 growth strategy to boost operational efficiency, create synergies, and strengthen product offerings in its petrochemicals sector. Every year, the plant produces approximately 210,000 tonnes of Nexlene products.

In order to build the 6.81-hectare factory in Ulsan, Sabic SK Nexlene Company, which was established in 2015, invested 605.1bn Korean won ($454 million) in its subsidiary, Korea Nexlene, according to a separate statement from SK Geo Centric. The plant’s capacity will rise by 43% to more than 300,000 tonnes after the expansion. It is anticipated that more than 90% of the output will be exported.

The plant’s extended portion is expected to start operating in the second quarter of 2024.