(Plastemart) -- Gulf Advanced Cable Insulation Company has awarded the engineering design, procurement and construction contract for the Wire and Cable Polymers Compounding Plant to POSCO Engineering Company of South Korea. The new plant will produce the power cable insulation materials at Sipchem's site in Jubail Industrial City. This plant comes as part of Sipchem's Phase III expansion downstream program.
The Gulf Advanced Cable Insulation Company will be owned equally by Sipchem and Hanwha. The SAR 230 mln (US$61 mln) is expected to be operational in Q3-2013. The major feedstock for the plant will be sourced from the International Polymers Company, one of Sipchem affiliates.