Home Polyacrylonitrile (PAN) Production Facility in Saudi Arabia

Polyacrylonitrile (PAN) Production Facility in Saudi Arabia

Opportunity overview

Providing precision machining services in order to shape large/small pieces of material into a state-of-the-art precise parts, so that they can meet very exact specifications. This process involves cutting, milling, turning, etc.

PAN is a crucial precursor for carbon fiber and is widely used in textiles, fiber-reinforced concrete, and filtration applications.

Key details

Investment Size :
~USD 450 million (integrated facility with acrylonitrile production)
Capacity :
~100 KTA (kilotons per annum)
Profitability :
  • Internal Rate of Return (IRR): >15%
Applications :
  • Textiles
  • Precursor to carbon fiber (used in aerospace, automotive, and construction)
  • Fiber-reinforced concrete
  • Water filtration

Market Drivers

  • Global PAN consumption is expected to grow at a 0.9% CAGR from 2020 to 2025, driven by demand in the Asia-Pacific region and carbon fiber applications.
  • Vision 2030 infrastructure projects worth USD 1 trillion create domestic demand for PAN in construction.
  • Growing global carbon fiber industry due to its lightweight, strength, and corrosion resistance.

Why Invest in Saudi Arabia ?

  • Proximity to raw materials: Acrylonitrile production (425 KT plant by INEOS and Saudi Aramco by 2025) will provide critical feedstock.
  • Access to competitive energy costs and financial incentives, including up to 75% project financing by SIDF.
  • Strategic location for exports to Middle East and Southeast Asia markets with significant demand growth.

Enablers and Incentives

  • HRDF subsidies covering 30–50% of Saudi employees’ salaries for two years (additional 10% for female employees).
  • Access to key raw materials like propylene and ammonia, available locally.
Request Details