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One of Sipchem's factories
Sahara International Petrochemical Co. (Sipchem) awarded engineering, procurement and construction (EPC) contracts for the expansion of the PDH-PP plant related to the subsidiary, Al Waha Petrochemical Co. for $169 million (SAR 634 million).
The 28-month contracts were awarded to SGC E&C Co. Ltd. and SGC Arabia Co. Ltd. on Aug. 26, Sipchem said in a statement to Tadawul.
For more news and details on the projects
These EPC contracts entailed increasing the total production capacity, as the additional capacity of propylene stands at 72,000 tons and polypropylene at 150,000 tons. After expansion, the total capacity of propylene and polypropylene will reach 537,000 tons and 600,000 tons, respectively.
The relevant financial impact will appear after the project is completed by Q4 2026, the statement added.
This project reflects Sipchem's ongoing efforts to enhance its production capacity and efficiency.
The increase in polypropylene production will significantly contribute to many industries, including automotive, fibers and food packaging films. Such an expansion will boost the company's market position as well as its growth strategy.
Any significant material developments related to this project will be announced in accordance with relevant regulations.
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