Riyadh – Mubasher: National Industrialization Company (Tasnee) has announced a major milestone in its industrial expansion strategy with the completion of construction works at its ethylene cracker expansion project.
In a regulatory filing submitted to the Saudi Exchange (Tadawul), the company confirmed that the project has now transitioned into the trial production phase, marking a significant step toward increasing the operational capacity of its petrochemical portfolio.
The expansion project is situated within the facilities of the Saudi Ethylene and Polyethylene Company (SEPC), which operates as a joint venture between Tasnee and the Sahara Olefins Company. Under the current corporate structure, a subsidiary of Tasnee maintains a 60% ownership stake in SEPC.
This project was specifically designed to enhance the production capabilities of the existing ethylene cracker, a move that aligns with the company’s broader objectives to optimize its manufacturing assets and leverage economies of scale in the production of essential petrochemical building blocks.
The transition to trial production follows the successful conclusion of all mechanical and construction activities.
During this current phase, the company will focus on testing the technical integrity of the newly installed components, ensuring that all systems meet the required safety and operational standards.
Trial production is a standard industry procedure intended to verify the efficiency of the expansion before the facility moves toward full-scale commercial operations. This phase allows engineers and technical teams to calibrate equipment and ensure that the output meets the necessary quality specifications.
This latest update serves as a follow-up to the company’s previous disclosure dated 24 December 2023. In that initial announcement, Tasnee had detailed its strategic intent to increase the output of the ethylene cracker plant.
The successful completion of the construction phase within the anticipated timeframe demonstrates the company's commitment to its project delivery schedules and its transparency in keeping shareholders informed of key developmental stages.
Regarding the economic impact of the expansion, Tasnee has provided guidance on when the project will begin to influence its corporate earnings. The company stated that the financial effect of the increased production capacity is expected to be reflected in its consolidated financial results starting from the third quarter (Q3) of 2026.
This projected timeline accounts for the duration of the trial production period and the subsequent ramp-up required to reach steady-state commercial output.
The expansion of the ethylene cracker is a vital component of Tasnee’s growth strategy within the Saudi industrial sector. By increasing the availability of ethylene, the project supports the downstream production of various polyethylene products, which are critical to a wide range of global industries.
This development underscores the ongoing investment in the Kingdom’s petrochemical infrastructure, aimed at strengthening the competitive position of domestic producers in the international market.
The commencement of trial production at the SEPC facility represents the culmination of extensive planning and construction efforts.
As the project moves toward its final operational stages, Tasnee continues to focus on achieving full commercial functionality, which is expected to contribute to the long-term value proposition for the company’s investors and stakeholders.
Further updates regarding the progress of the trial phase and the transition to commercial production are expected in accordance with regulatory requirements.
Tasnee recently completed the scheduled periodic maintenance for the ethylene and polyethylene plant, which is one of the joint ventures (JVs).
