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Tadawul-listed Sahara International Petrochemical (Sipchem) has awarded USD 169 mn EPC contracts to Seoul-based construction and engineering firm SGC E&C and its local offshoot SGC Arabia, according to a filing to Tadawul. The 28-month contracts will see both companies carry out expansionary works at the propylene and polypropylene plants of Sipchem’s subsidiary Al Waha.
Background: Sipchem wants to open new markets in Europe, India, South Asia and the broader Middle East. The Khobar-based petrochemical firm is looking to double its production capacity over the next seven years as it grows offshore sales. Sipchem also awarded EPC contracts worth USD 187 mn to SGC for the expansion of a chemicals manufacturing facility owned by an affiliate company earlier in July.
Additional production capacity: The expansion will boost annual propylene production capacity at Al Waha plant by 72k tonnes to 537k tones annually. Meanwhile, polypropylene (PP) output will increase by 150k tones to 600k per year.
What’s PP? a widely used thermoplastic, polypropylene is a key element used in nearly everything from fashion to automobiles. It is also commonly used in consumer goods packaging and the medical industry.
