South Korea's Daelim Industrial Co has signed a 1.1 billion Saudi riyal ($290 million) contract to build a butanol plant for Saudi Kayan Petrochemical Co and other partners, Saudi Kayan said.
Work on the plant is scheduled to run from January 2014 to May 2015, with trial production to start at the plant in the second quarter of 2015, Saudi Kayan said in a statement posted on the website of the Saudi stock exchange. The plant is due to produce 330,000 metric tons of n-butanol, and 11,000 metric tons of iso-butanol, annually, Saudi Kayan said.
Butanol is used as a solvent and for other purposes in manufacturing.
The plant is a joint venture between Saudi Kayan and partners including Saudi Aramco and the Dow Chemical Co.
Dow Jones Newswires