KARO was established in June 2004 to implement the Aromatics Project and take a 57.5 per cent interest in TKSC. The aromatics plant will produce 774 KTPA of paraxylene and 376 KTPA of benzene. The aromatics plant will be located adjacent to the existing EQUATE complex and planned plants for the Olefins II Project and Styrene Project. The KARO plant will be operated by EQUATE. The KARO plant is expected to commence commercial operations during the second quarter of 2009.

KARO’s principal raw materials consist of full range naphtha and py-gas feedstock to be supplied by KNPC and TKOC respectively. KARO will supply TKSC with benzene for the production of styrene. In addition to its main end products, KARO will produce a host of by-products including light naphtha, LPG, hydrogen, and light ends which will principally be supplied to KNPC.
The aromatics plant will be owned by Kuwait Paraxylene Production Company K.S.C. (Closed), a wholly-owned subsidiary of KARO. The shareholding structure of KARO and KPPC is as follows:

PIC (80 %),

Along with the main products, the Aromatics plant will also produce associated materials such as:

Currently the Aromatic project under the initial stages, accomplishment of the project and start of commissioning activities is expected in April 2008.