National Industrialization Company (Tasnee) announced, in a strategic move aimed at enhancing production efficiency, that the Saudi Ethylene and Polyethylene Company (SEPC) will undergo a scheduled shutdown of its operations. SEPC is one of the most prominent joint ventures of Tasnee and Sahara Olefins, in which Tasnee holds a 60% majority stake.
Details of the suspension schedule and its reasons
The company explained in an official statement published on the Saudi Stock Exchange (Tadawul) website that this scheduled shutdown will begin on January 2, 2026, and is expected to last for approximately 66 days. The company indicated that this measure coincides with a vital project to expand the ethylene cracker unit, which necessitates an extended shutdown to ensure the integration of the new expansions in accordance with the highest international technical and operational standards, thus guaranteeing operational safety and long-term production sustainability.
The importance of periodic maintenance in the petrochemical sector
Scheduled turnaround maintenance is a cornerstone of the global petrochemical industry. Its importance extends beyond immediate repairs to include system upgrades and enhanced environmental and occupational safety standards. These planned shutdowns help major industrial companies, such as Tasnee, avoid sudden, unscheduled outages that could lead to greater losses in the future. Furthermore, scheduling maintenance alongside expansion projects reflects a strategic approach to maximizing downtime efficiency and increasing future production capacity.
Expected financial and economic impact
Regarding the financial impact, the company indicated that the results will be reflected in the financial statements for the first quarter of 2026. The extent of this impact depends directly on the actual duration of the shutdown and the average selling prices of petrochemical products in global markets during that period. The company's management is currently taking all necessary precautions to minimize the financial and operational impact by enhancing the readiness of maintenance and operations teams and effectively managing inventory to meet customer commitments to the greatest extent possible.
Enhancing the position of Saudi industry
This project is part of a broader effort to strengthen the manufacturing and petrochemical sector in Saudi Arabia, a key pillar of Vision 2030's strategy to diversify the Kingdom's economy. Improving operational efficiency and increasing ethylene production capacity will bolster local supply chains and enhance the competitiveness of Saudi products in international markets, underscoring Tasnee's commitment to its leading role in this vital sector.
