It will produce toluene di-isocyanate (TDI) and methylene diphenyl di-isocyanate (MDI). These aromatic di-isocyanates produce rigid polyurethane foam, which is used to make insulation, plastic parts and carpet underlay.

The $500m first phase of the two-phase project involves the construction of a TDI facility with a capacity of 50,000 tonnes a year (t/y). The second, larger phase, will involve the addition of a further 50,000 t/y of TDI capacity and 100,000 t/y of MDI capacity.

Sweden's Chematur Engineering has been appointed the front-end engineering and design contractor and will also supply its proprietary technology to the plant.

The engineering, procurement and construction contracts are scheduled to be tendered by the end of the summer.

Toluene and benzene feedstock for the TDI and MDI will be imported at first, although the project sponsors will look for local suppliers in the future.

The end products will be sold locally and internationally.

The scheme is likely to be financed on a 70:30 debt-equity basis, with several banks, including Samba, Gulf Investment Corporation and HSBC, in talks for the financial advisory contract. A financing request is due to go to the banks by the summer.