International Diol Company (IDC)

Building on the success of IMC, Sipchem moved swiftly to integrate its operations further downstream. In October 2005, it established the International Diol Company (IDC) as an affiliate, also located in Jubail. The IDC plant was designed to produce more specialized, higher-value chemicals, including butanediol (BDO), maleic anhydride (MAN), and tetrahydrofuran (THF). The facility has a stated production capacity of 65,625 mtpa of butanediol. The creation of IDC just two years after IMC is a clear illustration of a deliberate downstream integration strategy. Methanol, the product of the IMC plant, is a key feedstock in the production process for BDO and its derivatives. By establishing IDC, Sipchem effectively created a captive, internal customer for its own primary commodity product. This strategic move offered several distinct advantages. First, it allowed Sipchem to capture more value by converting a basic commodity (methanol) into higher-margin specialty products (diols). Second, it reduced the company's overall exposure to the price volatility of the global methanol market, creating a more stable and predictable revenue stream. Finally, it contributed to the development of a more complex and resilient industrial cluster within Jubail, where the output of one plant becomes the input for another, enhancing overall efficiency and synergy.