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)

Please visit the complete ICIS plants and projects database
For more information on EVA and LDPE, visit
ICIS chemical intelligence

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