São Paulo – Rhodia and the Saudi International Petrochemical Company (Sipchem) have signed a contract for building an ethyl acetate factory in Jubail, in Saudi Arabia. Rhodia’s Brazilian subsidiary will be in charge of supplying the plant with technology and ethanol, which is one of the inputs used, and also of selling the product. The Arab company should invest US$ 100 million in building the plant. Ethyl acetate is used as a solvent in paint and varnish manufacturing.
In an interview to ANBA, Rhodia’s phenol and solvents president, Vincent Kamel, explained that the partnership with the Saudi company was established because of the country’s strategic location for selling to the European and Asian markets, which are the world’s leading importers of ethyl acetate. Besides, the Arab country is a strong producer of natural gas, a raw material for manufacturing acetic acid, another basic input for the industry.
"We already have a good market share in Latin America. We are working to become one of the leaders in Asia," claims the executive. According to him, the product will be sold mainly in Europe, the Middle East and Asia, and there is a slim chance of it being sold to Brazil, considering that the country has the largest oxygenated solvent manufacturing plant of the Americas, with an output ranging from 250,000 to 300,000 tonnes per year. Kamel also claims that Rhodia is considering other partnerships with Arab and Asian companies, although it has not provided further detail on the matter.
The Saudi plant will have an initial production capacity of 100,000 tonnes of ethyl acetate, which will demand 70 million litres of ethanol. According to Kamel, Rhodia is going to purchase the ethanol that it will supply to the Saudi plant from outsourced manufacturers. "Presently, we are the leading buyer of ethanol for non-fuel purposes," he says.
The executive also claims that the factory in the Arab country is part of Rhodia’s sustainable development and innovation effort, by which it works to replace cancerous products with others that are non-hazardous to health. He also claims that in 2009, the company has already launched a solvent of this type, and is about to launch another before the year ends. "We plan on launching a new one each year," he says.
The Saudi plant is also part of the company’s Brazil-based internationalization process. Rhodia has two of its eleven global operation headquarters based in the country, which, in addition to the solvents sector, accounts for the fibre sector (synthetic yarns). "The country in which Rhodia sells the most is Brazil, 17% of the company’s revenues come from Brazil," says Kamel.
Another feature of Brazil that is important to the French company is that the country supplies renewable raw materials, such as sugarcane for ethanol manufacturing. Kamel also highlights the relevance of the plant in Paulínia, in the interior of the state of São Paulo, to the company’s operations. "If it is not Rhodia’s largest, then it is our number 2," he claims.
Rhodia also owns three other industrial plants in Brazil, in the cities of Santo André, São Bernardo do Campo and Jacareí, all in the state of São Paulo. Paulínia is also home to the company’s research and development unit in the country. According to Kamel, the technology that will be used at the Saudi factory, however, is global, owned by Rhodia Operation.
Rhodia is based in France and employs 13,600 people worldwide. The company has been present in Brazil since 1919 and develops products for the following sectors: agrochemical and nutrition; automotive and transports; consumption goods and textiles; electric-electronic; energy and greenhouse gas emission reduction; aromas and fragrances; healthcare; industry and processes.
Sipchem was established in December 1999 and develops inputs for chemical industries.
*Translated by Gabriel Pomerancblum
