Five companies after new SABIC plastic plant

Five companies after new SABIC plastic plant

December 3, 2012 8:31 by Reuters

Five international engineering firms have bid to build a 50,000 tonnes-per-year polyacetal plant at Ibn Sina, an affiliate of Saudi Basic Industries Corp (SABIC), industry sources said.

SABIC said in 2010 the project, producing a plastic which is mainly used in the car industry, would require investment of nearly $400 million.

Spain’s Dragados, China National Chemical Engineering Co (CNCEC), Taiwan’s CTCI, South Korea’s Hanwha Engineering and SK Engineering and Construction have all made bids.

Bidding closed on Nov. 28 after it was extended from an October deadline, the sources said.

National Methanol Co, better known as Ibn Sina, is 50-percent owned by SABIC, the world’s largest chemical company, while Celanese Corp and an affiliate of Duke Energy Corp each have a 25 percent-stake.

The plant was originally planned to start up by 2013 with engineering and construction work beginning by 2011.

SABIC’s CEO said last month the company has given the go-ahead for the polyacetal plant, which will use methanol feedstock from Ibn Sina.

Some Saudi petrochemical companies have said they have faced difficulties sourcing feed stock supplies for new projects as the oil-rich kingdom balances their claims for gas supplies against the need to use it for power generation.