Sipchem secures loan for new plant in Saudi Arabia

Sipchem affiliate International Polymers has signed a SAR600m ($160m) loan facility agreement with Saudi Industrial Development Fund.

The loan will be used to finance the construction of an ethylene vinyl acetate and LDPE plant in the company's industrial complex in Jubail Industrial city.

The plant will have an annual production capacity of 200,000t.

Ethylene vinyl acetate is used to produce heat soluble adhesives, resin products and high-quality sports bandages, while LDPE is used in containers, bottles and medical detergents.

The plant is scheduled to come-online in the second quarter of 2013.