The chemicals producer, Acetex Corporation, has announced details of a billion-dollar venture to build a world class acetic acid, vinyl acetate monomer (VAM) and methanol petrochemical complex in Jubail Industrial City, Saudi Arabia.

Production at the joint project with the National Petrochemical Industrialisation Company (TASNEE Petrochemicals) is scheduled to start in 2007.

Acetex, which reported sales in excess of $333 million last year, makes a wide range of chemicals used in car parts, packaging, pharmaceuticals, medical products, textiles, adhesives, construction and agriculture.

The new plant will benefit from the favourable natural gas supply as well as Acetex's proprietary integration technology for the co-production of acetic acid and methanol.

Acetic acid, which is a significant intermediate used in the production of polyvinlyl acetate (PVA) relies on platinum group metal catalysts in its manufacturing process.

Brooke Wade, chairman and CEO of Acetex Corporation, commented: "These projects fit well with our long term growth strategy of becoming a global chemical company.

"The joint venture will maximize opportunities by combining Acetex's proprietary technology for the integrated production of acetic acid and methanol with a strong local partner in TASNEE Petrochemicals with their first class infrastructure and capability in an excellent strategic location.