Sahara International Petrochemical Company (Sipchem) has awarded engineering, procurement and construction contracts worth $169 million to expand the propylene and polypropylene plants of its subsidiary, Al-Waha Petrochemical Company.

The expansion is set to increase production capacity by 72,000 tonnes of propylene and 150,000 tonnes of polypropylene, the company said in a statement to the Saudi stock exchange on Tuesday.

Following the expansion, the total production capacity will reach 537,000 tonnes of propylene and 600,000 tonnes of polypropylene. 

The contracts, which have a duration of 28 months, were awarded to SGC E&C Company and SGC Arabia Company.

The work will be completed in 28 months. However, the contractor’s name was not given.

The new expansion is part of Sipchem’s strategy to enhance production capacity and operational efficiency. The increased output is expected to contribute to several industries, including automotive, fibre and food packaging films.

Any material development will be announced in due course, the statement said.

(Editing by Anoop Menon) (anoop.menon@lseg.com) 

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