Rabigh Refining and Petrochemical Company (Petro Rabigh) has signed a memorandum of understanding (MoU) with China’s Jiahua Chemicals to explore establishing a specialty chemicals manufacturing plant in Rabigh.
 
The plant will produce specialty chemicals derived from ethylene oxide and propylene oxide, which are used in the construction and automotive sectors, the company said in a statement to the Saudi stock exchange on Tuesday.

The key materials for the new project will be supplied by Petro Rabigh.

The MoU will last for 12 months.
 
The cooperation aligns with Saudi Arabia’s strategy to boost local production of specialty chemicals, reduce imports and support downstream industries related to the construction and automotive sectors, the statement said. 

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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