Samsung Engineering awarded $350m Saudi PP contract

Source: ICIS News

2001/10/16

SINGAPORE (CNI)--Saudi Polyolefins Co (SPC) has signed a $350m (Euro386m) turnkey contract with South Korea's Samsung Engineering Co to build a 450 000 tonne/year propane dehydrogenation unit and a 450 000 tonne/year polypropylene (PP) plant at the Al-Jubail petrochemical complex, a Samsung spokesman confirmed on Tuesday. The contract to build both plants was signed on 12 October.

SPC is a joint venture between Saudi Arabia's National Petrochemical Industrialisation Co (NPIC) and Basell Polyolefins.

The spokesman said Samsung would start work on the project late this year and the new units were likely to come on stream in January 2004.

He said the Royal Commission which runs the Al-Jubail complex will provide the majority of the utilities for the new plants.

The PP plant will use the Novolen gas phase process, which formerly belonged to the German company Targor, but was sold to ABB Lummus Global and Equistar Chemicals last year following Targor's incorporation into the BASF/Shell polyolefins joint venture Basell.