Sipchem announces the award of the EPC contract for the Polymers Compounding Plant

2011-10-24 Sipchem

Saudi International Petrochemical Company (Sipchem) and Hanwha Chemical Corporation announced Monday, 17 October 2011 that their affiliate the Gulf Advanced Cable Insulation Company has awarded the Engineering Design, Procurement and Construction (LSTK) contract for the Wire and Cable Polymers Compounding Plant to POSCO Engineering Co, South Korea. The new plant will produce the power cable insulation materials at Sipchem’s site in Jubail Industrial City. This plant comes as part of Sipchem’s third phase expansion downstream program.

As announced earlier, the Gulf Advanced Cable Insulation Company will be owned 50% by Sipchem and 50% by Hanwha Chemical of South Korea. The estimated cost of the plant is around SR 230 million which is expected to start its operation in the third quarter of the year 2013. The major feedstock for the plant will be sourced from the International Polymers Company, one of Sipchem affiliates.

Eng. Abdulrahman A. Al-Saif, President Project and Services of Sipchem 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 downstream development program. Eng. Al-Saif 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. He also added that the power cables insulation materials have a wide usage in the region.

Hanwha Chemical stated that this step is one of the important milestones of the project which would create great synergy with Hanwha’s existing wire and cable compounding business and also represents Hanwha’s strong commitment to Middle East region as an essential part of its globalization process.