Saturday, Apr 03, 2010

RIYADH (Zawya Dow Jones)--Saudi Basic Industries Corp. (2010.SA), or Sabic, said Saturday it began commercial operations of its expanded affiliate Eastern Petrochemical Co., or Sharq, on April 1.

The expansion will boost annual production at the complex to 5 million tons of petrochemicals. The plant is set to become the world's largest producer of ethylene glycol, a coolant and a base product for the manufacture of plastics, the company said in a statement on the Saudi bourse Web site.

Sharq will add 1.3 million tons a year of ethylene, 700,000 tons of ethylene glycol, 400,000 tons of high density polyethylene, or HDPE, and 400,000 tons of linear low density polyethylene, or LLDPE, annually to the complex.

The plant, which is based in the industrial city of Jubail on the Persian Gulf, is a joint venture equally owned by Sabic and a Japanese consortium led by Mitsubishi Corp. (7270.TO).

-By Mohammed Aly Sergie and Summer Said, Dow Jones Newswires; +96655 6221334; Mohammed.Sergie@dowjones.com Copyright (c) 2010 Dow Jones & Co.

(END) Dow Jones Newswires

03-04-10 0730GMT