Saudi International Petrochemical Co. (Sipchem; Al Khobar, Saudi Arabia; www.sipchem.com) has announced the commencement of commercial operation of the ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE) plant of the International Polymers Co. (a Sipchem affiliate), after successful completion of equipment testing and validating efficiency, production capacity and product quality.
The plant will produce 200,000 metric tons per year (m.t./yr) of EVA and LDPE. The feedstock needed to produce EVA and LDPE are ethylene, which will be provided by the Jubail United Petrochemical Co., a SABIC affiliate, and vinyl acetate monomer, which will be provided by the International Vinyl Acetate Co., a Sipchem affiliate.
On this occasion, the chairman of the International Polymers Co., Engr. Ahmad A. Al-Ohali said the commercial operation of the EVA plant, which is considered the first of its kind in the Middle East, is an important step forward in Sipchem’s planned expansion and growth program, where such specialized products come within Sipchem strategy to increase the added value of products through the implementation of integrated downstream projects using the company’s existing products to meet the local needs and the growing demand in the global markets. He stressed that the capacity and efficiency of the company’s management and employees enabled it to implement the project successfully, and that such product will open many areas for investment in downstream industries in Saudi Arabia.
The project has had a total cost of about SAR 3 billion, and has provided more than 200 direct job opportunities. Sipchem owns 75% of the International Polymers Company’s capital, while the remaining 25% is owned by Korea’s Hanwha Chemical Corp., one of the major petrochemical companies in Asia. Chang-Bum Kim, president of Hanwha Chemical Corporation said the commercial operation of the EVA plant is significant since this is its first investment in Saudi Arabia. Earlier, Sipchem announced signing a technical license agreement of the said plant with Exxon Mobil, meanwhile Sipchem Marketing Co. and Hanwha will cooperate in order to market the products globally. EVA is used as feedstock for the production of hot-melt adhesives, glue sticks and high-quality sports bandages, while LDPE is used as a feedstock for the production of many types of containers, medical nutrition bottles and glass detergents.