“One of the plants will produce methyl methacrylate monomer and will be the biggest plant in the world at a capacity of 250,000 metric tons a year,” SABIC said in a statement.
The other plant will produce polymethyl methacarylate with a capacity of 40,000 metric tons a year.
The firm said the next phase will focus on the basic engineering design, completion of supply agreements and regulatory approvals, the statement said.
The project was estimated in 2009 to cost $1 billion and is expected to be started in 2013, according to SABIC’s website.
SABIC’s Chief Executive Officer Mohamed Al-Mady, said in April that the firm is looking to expand into the performance chemicals segment in 2011.
He said some plants would be built in Saudi Arabia and others outside.
Mitsubishi Rayon Group is the world’s largest methyl methacrylate (MMA) producer and is a wholly owned subsidiary of Mitsubishi Chemical Holdings Corp.
Shares in SABIC closed at SR107 on Monday.