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Sipchem Awarded the EPC Contract for EVA Plant

Source: www.gulfoilandgas.com 12/15/2010, Location: Middle East

Saudi International Petrochemical Company (Sipchem) announced that its affiliate the International Polymers Company has awarded the Engineering Design, Procurement and Construction (LSTK) contract for the Ethylene Vinyl Acetate Plant to G.S. Engineering & Construction Corporation- Korea. The new plant will produce Ethylene Vinyl Acetate (EVA) and Low Density Poly Ethylene (LDPE) with an annual production capacity of 200 thousand metric tons in its industrial complex in Jubail Industrial City.

Eng. Ahmad Abdulaziz Al-Ohali, Chairman of the Board of Directors of the International Polymers Company declared that the award of the design, procurement of equipment and construction contract is considered an important step in Sipchem’s well-studied expansion and development program. Mr. Al-Ohali confirmed that this step affirms the capabilities of the company’s management and its continued endeavors to acquire the best possible technical and financial offers for this project. The plant is expected to start its operation in the second quarter of the year 2013. Mr. Al-Ohali also added that such a product will set the ground for many investment opportunities for the downstream industries in the Kingdom of Saudi Arabia.

The estimated cost of the project shall be around 3 billion Saudi Riyals and is expected to create 200 direct job opportunities. It is worth mentioning that the Ministry of Petroleum and Minerals has already allocated the main feed stock 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.

The International Polymers Company has been founded in the year 2009, whereas Sipchem owns 75% of its shares and Hanwha Chemicals – Korea owns 25%. The plant is considered the first of its kind in the region to produce Ethylene Vinyl Acetate.

The project’s Polymers products are considered very important components for many downstream and end sophisticated products. Sipchem has previously announced the conclusion of the technology-licensing contract for this plant with Exxon Mobil –USA on 20th May, 2009. Sipchem and Hanwha shall jointly market the plant’s products worldwide.

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