Industry News

Sipchem to Produce 200,000 Metric Tons of EVA at its Newly Commenced Plant in Jubail City

Published on 2015-04-03. Author : SpecialChem

The Saudi International Petrochemical Company (Sipchem) announces commercial operation of the ethylene vinyl acetate (EVA) and low density polyethylene (LDPE) plant of the International Polymers Company (a Sipchem affiliate). The commercial operation commences at the company's complex in Jubail Industrial City, after successful completion of testing the plant equipment and ensuring its efficiency, production capacity and products quality.

The plant will produce 200,000 metric tons of EVA and LDPE, and its products of polymers are essential for many advanced downstream industries and finished products. The feedstock needed to produce EVA and LDPE are ethylene, which will be provided by the Jubail United Petrochemical Company, a SABIC's affiliate, and vinyl acetate monomer, which will be provided by the International Vinyl Acetate Company a Sipchem affiliate.

On this occasion, the Chairman of the International Polymers Company, Engr. Ahmad A. Al-Ohali said the commercial operation of the EVA plant, which is considered the first of its kind in the Middle East, is an important step forward in Sipchem's planned expansion and growth program, where such specialized products come within Sipchem strategy to increase the added value of products through the implementation of integrated downstream projects using the company's existing products to meet the local needs and the growing demand in the global markets. He stressed that the capacity and efficiency of the company's management and employees enabled it to implement the project successfully, and that such product will open many areas for investment in downstream industries in Saudi Arabia.

The project has had a total cost of about SAR 3 billion, and has provided more than 200 direct job opportunities. Sipchem owns 75% of the International Polymers Company's capital, while the remaining 25% is owned by Korea's Hanwha Chemical Corporation, one of the major petrochemical companies in Asia. Chang-Bum Kim, President of Hanwha Chemical Corporation said the commercial operation of the EVA plant is significant since this is its first investment in Saudi Arabia. Earlier, Sipchem announced signing a technical license agreement of the said plant with the American company Exxon Mobil, meanwhile Sipchem Marketing Company & Hanwha will cooperate in order to market the products globally. EVA is used as feedstock for the production of hot-melt adhesives, glue sticks and high-quality sports bandages, while LDPE is used as a feedstock for the production of many types of containers, medical nutrition bottles and glass detergents.

About Sipchem

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer, as well as carbon monoxide through its various affiliates. It has been listed on Saudi Stock Market since 2006.
It serves its customers in the construction, solvents, automotive, electronics, polymer, coatings, and pharmaceutical industries that help improving the lives of people worldwide.

Source: Sipchem

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