Petrokemya awards Samsung new plant contract
Posted: 16 July 2003
Arabian Petrochemical Company (PETROKEMYA), a wholly owned affiliate
of Saudi Basic Industries Corporation (SABIC) has awarded a lump-sum
turnkey contract to the Korean company, Samsung Engineering Co.
for the engineering, procurement and construction of a third Butene-1
plant.
The facility will be constructed at Al-Jubail Industrial City on
the eastern coast of Saudi Arabia, and is scheduled for completion
by the first quarter of 2005.
Plant capacity will be 130,000 mt per year of butene-1. The two
existing butene-1 plants at PETROKEMYA already produce 100,000 mt/y.
After the expansion, the affiliate will have a total butene-1 capacity
of 230,000 mt/y.
Vice Chairman and CEO of SABIC, Mohamed Al-Mady said: “This
expansion reaffirms SABIC’s commitment to grow its core business,
and moves us closer to achieving our vision of to become one of
the world’s leading global petrochemical companies. With this
additional plant, we are moving closer to our production target
of 48 million mt/y by 2010.”
PETROKEMYA and SABIC Engineering & Project Management jointly
undertook the work leading to the contract, which was awarded through
an international competitive bidding process.
Other products produced by PETROKEMYA include ethylene; polystyrene;
propylene; butadiene; and benzene.
About SABIC
The Middle East’s largest petrochemicals company, SABIC, is
based in Riyadh, Saudi Arabia.
It was founded in 1976, when the Saudi Arabian Government decided
to use hydrocarbon gases released in the production of oil as raw
material for the production of chemicals, polymers and fertilizers.
The Saudi Arabian Government owns 70% of SABIC shares, with the
remaining 30% held by private investors in Saudi Arabia and other
countries of the Gulf Cooperation Council (GCC).
SABIC’s business activities have been restructured and a new
management model became effective on 1 September 2002. There are
now six Strategic Business Units (SBUs): Basic Chemicals; Intermediates;
Polyolefins; PVC & Polyester; Fertilizers and Metals. Supporting
all these functions is a corporate core consisting Human Resources;
Corporate Finance; Corporate Control and Research & Technology.
A Shared Services Organization will become operational in 2003.
SABIC has two large industrial sites in Saudi Arabia – Al-Jubail
and Yanbu – with sixteen world-scale production complexes.
Some of these production complexes are operated with multi-national
partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi
Chemicals. In addition, SABIC has interests in three production
complexes in Bahrain. Over the last 16 years, SABIC’s overall
production capacity has increased considerably. In 2002 it amounted
to 40.6 million metric tons.
SABIC EuroPetrochemicals owns two petrochemical production sites
in Geleen (Netherlands) and Gelsenkirchen (Germany) for the production,
marketing and sales of polypropylenes, polyethylenes and hydrocarbons.
They annually sell about 2.6 million tonnes of polymers, mainly
in Europe. About 2,300 people are employed at SABIC EuroPetrochemicals.
SABIC employs over 16,000 people worldwide, most of whom are based
in Saudi Arabia. In 2002 SABIC posted sales of approximately SR34bn
(US$9.06bn) and a net profit of approximately SR2.84bn (US$758.4m)
Posted by Richard Price,
Editor Pipeline Magazine
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