Saudi International Petrochemicals Company (Sipchem) has awarded Fluor Canada a contract for the construction of an acetic acid plant with an annual production capacity of 460,000 tonnes, a vinyl acetate plant with an annual production capacity of 300,000 tonnes, and common utilities for the complex.

Licensing agreements for the acetic acid and vinyl acetate monomer (VAM) plants have been signed with US-based Eastman and Dupont companies. Initial construction work is underway and commercial operation is expected to start early 2009.
The acetyl project is the first of its type in the Middle East region and constitutes a major achievement for Sipchem and its partners, and it is in line with the company vision and objectives in investing in integrated petrochemical projects that would provide higher returns for the shareholders and the national economy at large.
Sipchem and Helm Arabia GmbH and Company own the acetic acid and VAM projects jointly
Sipchem is a Saudi joint stock company, founded in late 1999, with a share capital that currently amounts to SR1.5 billion. Currently, Sipchem operates a methanol plant with an annual production capacity of 1 million tonnes and a butanediol plant with an annual production capacity of 75,000 tonnes.