Sipchem taps S Korea's GS E&C to build Jubail EVA/LDPE plant

15 December 2010 07:56  [Source: ICIS news]

Sipchem plantSINGAPORE (ICIS)--Saudi International Petrochemical Co (Sipchem) said on Wednesday its affiliate, the International Polymers Company (IPC), has awarded GS Engineering & Construction of South Korea a contract to build a chemicals facility in Jubail.

The new plant was expected to produce ethylene vinyl acetate (EVA) and low density polyethylene (LDPE) with an annual production capacity of 200,000 tonnes/year, Sipchem said in a statement. The project was worth around Saudi riyal (SR) 3bn ($800m), it said.

The project was expected to generate 200 jobs, with plant operations scheduled to start in the second quarter of 2013, it said.

“The [Saudi Arabia] Ministry of Petroleum and Minerals has already allocated the main feedstock for the project [ethane gas], which will be cracked and treated to ethylene by one of SABIC companies and vinyl acetate monomer, as a secondary feedstock shall be supplied by the International Vinyl Company, a Sipchem affiliate,” Sipchem said.

IPC is 75% owned by SipChem, with the remaining 25% held by Korea’s Hanwha Chemicals.

The joint owners of IPC were expected to jointly market the plant’s polymer products worldwide, Sipchem said in the statement.

($1 = SR3.75)

To discuss issues facing the chemical industry go to ICIS connect

By: Pearl Bantillo
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index