|The first plant produces ethylene vinyl acetate and low density polyethylene and the second facility will make ethyl acetate and butyl acetate. The production capacity of the vinyl acetate plant will be 200,000 tonnes per annum. It will be operated by the International Polymers Company Limited, an affiliate of Sipchem founded in 2009.|
Sipchem and Hanwha Chemical of South Korea have 75% and 25% stakes in the venture respectively. The total cost of the project is estimated at around SAR 3 billion. The project's main contractor, Korean company GS Engineering & Construction Company started construction work at the site last month. The plant is scheduled to start operations during the Q2 of 2013.
Sipchem announced a technology license agreement with ExxonMobil in May 2009 for this plant. Both Sipchem and Hanwha will be in charge of global marketing operations for these products.
EVA is used as a feedstock in the production of heat soluble adhesives, resin products and high quality sports bandages. LDPE is used as a feedstock in the production of various types of containers, bottles and medical detergents. The ethyl acetate and butyl acetate plant will have a production capacity of 100,000 tonnes per annum.
The main Korean contractor, E Tech Engineering and Construction Company has already started construction work at the site. This plant is expected to start production in the Q1 of 2013. The total cost of the project is estimated at around SAR 350 million.
The ethyl acetate plant will cater to domestic and global markets. Its products will be used as a solvent in the manufacture of inks and industrial fluids and granules. The project will be wholly owned by Sipchem.