Sipchem awards SAR 634M EPC contracts for Al Waha plant

Sahara International Petrochemical Co. (Sipchem) awarded engineering, procurement and construction (EPC) contracts for the expansion of the PDH-PP plant of Al Waha Petrochemical Co., an associate firm, for 169 million (SAR 634 million).

The 28-month contracts were awarded to SGC E&C Co. Ltd. and SGC Arabia Company Ltd. on Aug. 26, Sipchem said in a statement to Tadawul.

These EPC contracts entailed increasing the total production capacity, which currently stands at 72,000 tons of propylene and 15,000 tons of polypropylene, to 537,000 tons of propylene and 600,000 tons of polypropylene.

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.