SABIC, Mitsubishi Gas Chemical in negotiations to extend Saudi methanol joint venture agreement

Japan Saudi Arabia Methanol Co (JSMC) and SABIC have been negotiating details of the Saudi Methanol Company (AR-RAZI) joint venture scheme, intending to extend the current agreement.

Japan Saudi Arabia Methanol Co was founded in 1980.
Japan Saudi Arabia Methanol Co was founded in 1980.

JSMC, an equity method affiliate of Mitsubishi Gas Chemical Company (MGC), and SABIC had started in 1980 the fifty-fifty methanol operations joint venture through a newly established AR-RAZI.

The joint operation agreement on AR-RAZI is scheduled to be expired on 29 November 2018.

However, both companies have yet to reach their final agreement even when the second results of MGC are due to be disclosed along with forecasts for the current fiscal year end. The discussions are still underway, considering all possibilities. MGC confirmed that it will disclose the result when the negotiations between JSMC and SABIC are finalised.

The impact of this matter on MGC’s consolidated business performance is not included in the business forecasts announced, since the possible effects have yet to be determined.

MGC will announce any corrections in the business forecasts that may be necessary in the future.

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