Contracts signed for new PP and LDPE plants

SABIC affiliate Saudi Kayan has signed contracts for the construction of new Polypropylene and Low Density Polyethylene plants at its complex in the Al-Jubail Industrial City

Saudi Basic Industries Corporation (SABIC) affiliate, the Saudi Kayan Petrochemical Company has signed letters of award with two companies on january 24, 2007 for the construction of new polypropylene and low density polyethylene plants at its complex in Al-Jubail Industrial City.

One contract was signed with Samsung Engineering for the construction of a 350KTA PP plant and the other with Simon Carves for a 300 KTA LDPE plant.

Saudi Kayan is currently under construction.

SABIC holds 35 percent of the company's capital of SR15 billion (USD4 billion) and Kayan Petrochemical Company holds 20 percent.

The remaining 45 percent will be offered for public subscription.

The company's complex at Al-Jubail Industrial City is expected to go live in 2009 with an annual capacity exceeding 4 million tons of chemical products.

It will add some specialised chemicals to the Saudi marketplace that will be produced in Saudi Arabia for the first time.

These products include aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene and polycarbonate.

This is in addition to ethylene, propylene, polypropylene, ethylene glycol, polyethylene and other products which will provide wide opportunities for downstream industries.

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