Saudi Basic Industries Corporation and ExxonMobil said that their Kemya rubber plant will have an immediate earnings impact from its H2 2015 start riding increased transport demand and vehicle use in the region, Africa and Asia.

Mr Jacobus Van Haasteren executive VP of performance chemicals at Sabic at a news conference in Riyadh said that “We expect an immediate positive contribution to the results of Kemya, Sabic and Exxon Mobil. The USD 3.4 billion project is aimed at both domestic and international synthetic rubber markets as the world's top oil exporter tries to strengthen its downstream industry.

Mr Mohamed Al Mady CEO of Sabic said that the partners had not yet decided how to finance the plant but all options were open. This is the least of our worry at this time because we are two strong companies and we have many ways to finance it, it will be announced as soon as we are ready for financing.

Mr Stephen Pryor president of ExxonMobil Chemical said that “I expect active markets in the Middle East, Asia and Africa for butyl rubber demand. The global demand for synthetic rubber products is going much faster than GDP for example the butyl rubber will grow in 6% range for a number of years, EPDM rubber will grow in a similar fashion.”

Source - Reuters

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