Saudi: Sipchem awards $169mln project contracts for expanding subsidiary’s business

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Riyadh – Sahara International Petrochemical Company (Sipchem) awarded engineering, procurement and construction contracts for the expansion of Al Waha's propylene and polypropylene plants.

The agreements, valued at $169 million, were awarded to SGC E&C Company and SGC Arabia Company on 26 August 2024, according to a bourse disclosure.

The additional production capacity is 72,000 tonnes of propylene and 150,000 tonnes of polypropylene

Meanwhile, the total production capacity after the expansion will stand at 537,000 tonnes of propylene and 600,000 tonnes of Polypropylene.

Sipchem highlighted that the 28-month agreement expected that the financial impact would reflect after the project completion by the fourth quarter (Q4) of 2026.

This project aligns with Sipchem's continuous efforts to enhance its production capacity and efficiency. This expansion will bolster the company's position in the market and support its growth strategy.

In the first half (H1) of 2024, the Tadawul-listed company logged net profits valued at SAR 303 million, down 61.31% year-on-year (YoY) from SAR 783.30 million.