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Kemya awards specialty elastomers plant EPC contract

27 June 2012

Al-Jubail Petrochemical Company (Kemya) has awarded a $3.4bn engineering, procurement and construction (EPC) contract to Daelim Industries, Technip and Tecnicas Reunidas to build a new specialty elastomers plant in Al-Jubail, Saudi Arabia.

The elastomers plant, to be integrated with the existing Al-Jubail complex, is expected to produce up to 400,000tpa of thermoplastic specialty polymers, carbon black, halobutyl, styrene butadiene, polybutadiene and ethylene propylene diene monomer rubbers to serve Middle Eastern and Asian markets.

"To expand and diversify Saudi Arabia's manufacturing sector, these facilities are aligned with the kingdom's national industrial clusters development programme."

The specialty elastomers plant is expected to be completed in 2015. KEMYA, a joint venture between Saudi Basic Industries Corporation (SABIC) and Exxon Chemical Arabia, will finance the deal from shareholder or third party debt sources.

Other facilities are in development that are associated with the elastomers facility in Al-Jubail, including a product application centre in Riyadh, a vocational training centre in Yanbu, the High Institute for Elastomer Industries (HIEI) as well as thermoplastic polyolefin (TPO) compounding and inventory management facilities.

Koos van Haasteren, SABIC performance chemicals executive vice president, said: "The HIEI, product support centre and KEMYA elastomers facility together build a strong foundation for investments in targeted industries such as tire manufacturing, building and construction, automotive and appliances."

To expand and diversify Saudi Arabia's manufacturing sector, these facilities are aligned with the kingdom's national industrial clusters development programme.

Neil Chapman, ExxonMobil Chemical polymers senior vice president, said: "The expansion will employ the latest proprietary processes and product technologies to meet the growing global demand for specialty elastomers."