26 September 2013 15:24 [Source: ICIS news]
DUBAI (ICIS)--Saudi International Petrochemical (Sipchem) has began operations at its new 200,000 tonne/year ethylene vinyl acetate (EVA) and low density polyethylene (LDPE) plant at Jubail Industrial City, the company said on Thursday.
“Sipchem announces the beginning of operations of utility units, offsite units and initial operation of some process units of ethylene vinyl acetates and low density polyethylene plant owned by International Polymers Company (an affiliate of Sipchem),” the company said in a bourse filing.
“The company has completed first phase which includes installation and testing of major equipment and pre-manufactured modules, of which installation and testing required longer time, prior to completion of basic preparations for initial start-up, expected during fourth quarter of this year.”
The statement said EVA and LDPE products are in line with Sipchem strategies to implement downstream projects that are integrated with Sipchem current products to meet local as well as international demand.
Raw materials required for EVA and LDPE production are ethylene which will be supplied by Jubail United Petrochemical Company -- a Sabic affiliate and vinyl acetate monomers (VAM) which will be supplied by International Vinyl Acetate Company- a Sipchem affiliate.
Sipchem owns 75% of the new company, while South Korea’s Hanwha owns 25%. The cost of the project is estimated at 3bn Saudi riyal (SR) ($800m).
Sipchem said it will announce the financial impact and any other developments in the project in due course.
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