Sipchem to invest US$6.7 bln in petrochem complex

20-Nov-06

Saudi International Petrochemical Company (Sipchem) plans to invest SR25 billion ($6.67 billion) in a petrochem complex by 2011. Sipchem will float half the capital in a new company that will be set up in the second half of next year. This company will own the complex and Sipchem will hold atleast 50% in the new firm's capital. Of the total project cost estimated at US$7 billion, 70% will be funded from debt and 30% from equity The new olefins and derivatives complex is planned to have an annual production capacity of 1.3 million tons of ethylene and propylene and 800,000 tons of high-added value polymers. The new complex, which will be based in the industrial hub of Jubail on the Gulf coast, would raise Sipchem's total output to over 5 million tpa.