Saudi’s Sipchem affiliate secures $160m loan for EVA/LDPE project

21 November 2011 05:34  [Source: ICIS news]

SINGAPORE (ICIS)--Saudi International Petrochemical Company (Sipchem) said its affiliate, the International Polymers Company (IPC) - has signed a Saudi Riyal (SR) 600m ($160m) loan to support the construction of an ethylene vinyl acetate (EVA)/low density polyethylene (LDPE) plant in Jubail.

In a statement released to the Saudi Stock Exchange over the weekend, Sipchem said IPC signed the 10-year loan facility with Saudi Industrial Development Fund (SIDF) that includes a grace period of three years.

The plant being built at the Jubail Indutrial City in Saudi Arabia will have an annual production capacity of 200,000 tonnes, Sipchem said.

The project is estimated to cost SR3bn, with the start-up due in the second quarter of 2013, it said.

“The remaining cost will be funded by shareholders and banks,” Sipchem said.

The engineering, design, producer and construction contract for the plant was awarded to South Korean firm GS Engineering & Construction Corp.

IPC is 75% owned by Sipchem, South Korea’s Hanwha Chemicals holding the remaining 25%, according to Sipchem’s website.

($1 = SR3.75)

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By: Pearl Bantillo
+65 6780 4359



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