Sipchem signs loan deal for Saudi Arabian petrochemical plant

Sipchem_petrochemical_comSipchem’s polymers affiliate, International Polymers Company (IPC), has signed a US$373.3 million loan agreement to finance a new petrochemical plant in Jubail Industrial City, Saudi Arabia

The Shariah-compliant loan will help finance half of the project's cost, estimated at US$800 million, according to a statement from Sipchem.

South Korea's GS Engineering and Construction will build the plant, which is expected to begin operations in the second half of 2013 and will produce Ethylene Vinyl Acetate (EVA) and Low Density Poly Ethylene (LDPE), with an annual production capacity of 200,000 tonnes.

EVA is used as a feedstock in the production of heat soluble adhesives and resin products, while LDPE is used as a feedstock in the production of various types of containers and bottles.

IPC is jointly owned by Sipchem who holds a 75 per cent interest and Hanwha Chemical Corporation who controls the remaining 25 per cent.

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