Sipchem unit to establish conversion projects

Saudi International Petrochemical Company (Sipchem) has announced that its affiliate Sipchem Chemicals Company (SCC) signed on Monday an incorporation agreement with Hanwha Chemicals Corporation to form a new company — Saudi Specialty Products Company — for establishing conversion projects in Saudi Arabia. This, Sipchem stated, is in line with its commitment to implement fuel and feedstock volume allocation required to establish EA, EVA, WCC and conversion industries as issued by Ministry of Petroleum and Mineral Resources.
The joint venture between SCC and Hanwha comprises two manufacturing facilities; the first one located at Hail will produce 4,000 MTPA of EVA films whereas the second one located at Riyadh will manufacture plastic moulds up to 1000 tons.
SCC owns 75 percent of new company capital while Korean Hanwha owns 25 percent. SCC will use state-of-the-art technology of Mitsui Chemicals Tohcello (MCTI) Inc. Japan, for the EVA film project and Kiefer Werkzeugbau GmbH, Germany, know-how transfer and project services for moulds project.
Total investment for these conversion projects will be approximately SR225 million ($60 million) and will create employment opportunities for around 180 personnel.
EVA film is used for crystalline silicon and thin film solar photovoltaic module production. EVA film is selected to be the most optimum material for the encapsulation and it is widely used for solar cell encapsulation and perceived to be the most operating-friendly and cost-effective material for solar cell glass encapsulation. This project is the first-of-its kind in the region and illustrates Sipchem commitment toward the Kingdom objective to become a driving force in renewable energy.
On the other hand, Moulds Manufacturing Facility, located in Riyadh, has been designed to manufacture various types of moulds and dyes used in plastic and encapsulation plants.
The facility has infrastructure to design any industrial or commercial product and there-after make prototypes of the article, and produce the product in mass by building a mould or tool for the purpose. The facility can test the performance of the mould or dye to the required standards.
The Riyadh facility will help the converter industries of polymer, metal sheets, and aluminum to obtain tools and dyes to exact requirements. In addition to manufacturing new moulds and tools, the facility will assist in servicing and maintenance of existing moulds and dyes.
The knowhow provider, Kiefer, has vast experience in the tool and dyes manufacturing field.
Sipchem has indicated that these projects will play a major role in the Kingdom's industrial diversification and boost development in the conversion industry of the Kingdom.
Sipchem has confirmed its approach to join hands with major players in the global petrochemical business to support Saudi downstream manufacturing investments.
Sipchem stated it will announce financial impact and any other developments in these projects in due course.