ABB Lummus and Samsung Engineering have won contracts for the construction of Saudi Polyolefins Company's (SPC) 450,000 tonnes per year (tpy) propylene plant and 450,000 tpy propylene dehydrogenation plant in Al Jubail, Saudi Arabia, an SPC statement said.
The new petrochemical complex of SPC, a joint venture between National Petrochemical Industrialisation Company (NPIC) and Basell, is scheduled for completion in the fourth quarter of 2003 with production expected to begin in the first quarter of 2004.
The polypropylene plant will produce homopolymers and random copolymers using the Novolen gas phase technology. The hydrogenation unit will utilise the catofin technology from ABB Lummus Global for converting propane into propylene. The polypropylene produced in the new complex will be marketed domestically and internationally.
"The formation of SPC was achieved as a result of excellent management focus," said SPC chairman Mubarak A. Al Khafrah. "SPC will now work to complete the project with the help of partners NPIC and Basell. We extend our thanks and appreciation to the Royal Commission for Jubail and Yanbu, Aramco, Saudi Electric Company, the General Investment Authority and the Ministry of Commerce in Saudi Arabia for their support to the formation of SPC and to the signing of the construction contract."
Chief executive of National Industrialisation Company (of which NPIC is a subsidiary) and vice chairman and managing director of NPIC said: "The signing of the construction contract is a milestone step toward the formation of a giant petrochemical complex in Jubail."
Rudy Woelfel, president of Basell International and a member of the SPC board of directors, said: "This truly is the first step toward strengthening relations and investing in the Kingdom of Saudi Arabia. I look forward to building upon this positive start to achieve our goal of extending our global reach into this part of the world."
President and managing director of SPC Saleh Al Nazha said the basic engineering work had been completed and detailed engineering work and work at the site had already begun. He added that the manpower estimate for the operation of the facilities after implementation of the project was about 250 and that financing activities for the project were also progressing.
The SPC venture with a capital of SR600 million ($120 million) is 75 per cent owned by NPIC and 25 per cent by Basell Holdings Middle East GmbH. Basell is the world's largest producer of polypropylene and a leading producer of polyethylene and advanced polyolefins.
