Mitsubishi Rayon Co. and Saudi Basic Industries Corp. (SABIC) will form a joint venture to set up a facility in Saudi Arabia to produce methyl methacrylate (MMA) and other allied products. The two companies signed a letter of intent to this effect on 10 August. The letter of intent includes details of the partnership in the venture and the required investment of about USD 1 billion. The letter also includes the broad framework of the structure of the joint venture, the technology to be used, supply of raw materials and marketing strategy. Under the agreement, the joint venture will use the new ethylene process, also known as Alpha process, to manufacture 3000tns/yr of polymethyl methacrylate (PMA) and 250,000tns/yr of MMA. Methanol and ethylene, used as raw material in this process, will be supplied by SABIC. The joint venture is also exploring the possibility of manufacturing other allied products. The facility is expected to begin operations by 2013.