Sipchem inks JV pact with Hanwha for new petrochemical company in Al-Jubail

16-Jul-09

Saudi International Petrochemical Co (Sipchem) has inked a joint venture agreement with South Korea’s Hanwha Chemical Corp to establish a new petrochemical company in Al-Jubail Industrial City. To be build at an estimated outlay of US$1.1 bln, capacity will include a 200,000 tpa ethylene vinyl acetate (EVA) plant and a 125,000 tpa of polyvinyl products. Operations are expected to commence by 2013, in which Sipchem will hold a 75% stake and Hanwha holding the balance. Sipchem has signed a technology licensing agreement with ExxonMobil Chemical Technology Licensing LLC, USA for the EVA project.