Market sources informed SSESSMENTS.COM that Saudi Polymers Co. would shut down its polystyrene unit permanently and amortize its value. The sources said that the decision was made after difficulties in achieving profits amid the current environment in the global polystyrene market. The company expected the amortization to have an impact of up to SAR277 million ($60.5 million) on its financial statements for the second quarter of 2020.
Saudi Polymers is a joint venture between the National Petrochemical Company (Petrochem) and Arabian Chevron Phillips Petrochemical Co. Ltd. PS production accounted for less than 2% of the project’s total output in 2018, according to Petrochem’s filing with the Saudi bourse.
