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Sipchem to build new $189m Saudi petchem facility

By Pramod Kumar
South Korea's SGC will construct an ethylene-vinyl acetate plant in Saudi Arabia's Jubail Industrial City Reuters/Amanda Perobelli
South Korea's SGC will construct an ethylene-vinyl acetate plant in Saudi Arabia's Jubail Industrial City

Saudi International Petrochemical Company (Sipchem) has awarded a $189 million contract to a South Korean contractor to build a new petrochemicals facility in Saudi Arabia.

The project was won by SGC Engineering & Construction, an engineering, procurement and construction contractor, The Korean Economic Daily, a financial news outlet, reported.

The deal involves the construction of an ethylene-vinyl acetate plant in Jubail Industrial City.

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Since 2010, SGC has collaborated with Sipchem on four projects, resulting in order worth $870 million.

The South Korean company is planning to discuss new projects with local clients and further expand its presence in the overseas market in the second half of the year, the report said, citing a statement.

Last week Saudi Aramco and Japanese company Sumitomo Chemical said they will inject new funds into Rabigh Refining and Petrochemical Company (Petro Rabigh), as well as waive loans, in a bid to support the Saudi refinery’s turnaround strategy.

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