MOSCOW (MRC) -- Saudi International Petrochemical Company (Sipchem) has announced the commencement of operations of utility and offsite units, and initial operation of some process units of ethylene vinyl acetates (EVA) and low density poly ethylene (LDPE) plant owned by its affiliate International Polymers Company at its complex in Jubail Industrial City, according to Arab News.
By this accomplishment, the company, which issued a statement in this connection earlier on June 11, has said that it has completed the first phase.
The phase includes installation and testing of major equipment and pre-manufactured modules, whose installation and testing required longer time, prior to completion of basic preparations for initial startup expected during fourth quarter of this year.
The plant capacity is 200,000 tpa of ethylene vinyl acetates (EVA) and low density poly ethylene (LDPE).
Raw material required for EVA and LDPE production is ethylene, which will be supplied by Jubail United Petrochemical Company, an affiliate of Saudi Basic Industries Corporation (SABIC) and vinyl acetate monomers (VAM) which will be supplied by International Vinyl Acetate Company, a Sipchem affiliate.
The company will announce initial operation and financial impact or any other developments in due course. The total cost of construction of this project is SR3 billion.
As MRC wrote previously, IPC signed on 10 June 2013 a financing agreement of SR 704 million (USD 188 million) with Public Investment Fund (PIF). The loan is repayable over 14 years in 26 semiannual and equal installments commencing December 2014. The loan is payable until 30 June 2027 and secured until project completion by order notes. The purpose of this agreement is to support the project financing of a greenfield EVA/LDPE plant.
International Polymers Company (IPC) is jointly owned by Sipchem (75%) and Hanwha Chemical Corporation (25%).
Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC