Sipchem, Hanwha joint venture to build a polymers compounding plant

RIYADH, SAUDI ARABIA: Saudi International Petrochemical Company (Sipchem) and Hanwha Chemical Corporation will jointly build a polymers compounding plant to produce special resin grades to be used to manufacture wire and cable products. The plant will be built at Sipchem site in Jubail Industrial City, Saudi Arabia with an estimated cost of around SR 225 million ($ 60 million). Expected to start production during the second quarter of the year 2013, the plant comes as a part of Sipchem’s third phase expansion programme.

The new wire & cable polymers compounding company will be owned 50 per cent by Sipchem and 50 per cent by Hanwha Chemical. The products will be marketed by the new company in the Middle East and Europe. The major feedstock for the plant, low density polyethylene (LDPE) and ethylene vinyl acetate (EVA) will be sourced from the International Polymers Co one of Sipchem affiliates. The products will be used to produce power cables insulation materials which have a wide usage in the region. The new project will be financed by the partners and other financial institutions which have not yet been determined.

(C) WOC News