RIYADH, 16 June 2004 — Saudi Basic Industries Corp. (SABIC) announced yesterday it had awarded a contract for management of the construction of one of the world’s largest petrochemical complexes to US-based Foster Wheeler.
“SABIC has awarded a program management service contract for the engineering, procurement and construction of its new petrochemical complex in Yanbu Industrial City (on the Red Sea) to Foster Wheeler Energy Ltd.,” a statement said.
“The complex will be one of the world’s largest petrochemical sites and is expected to begin production before the end of 2007,” said CEO Mohammed Al-Madi. The statement did not give the value of the deal, but said the complex would have an annual production capacity of 3.8 million metric tons of ethylene, ethylene glycol, polyethylene and polypropylene products. Once the plant comes on stream, SABIC will move from its current position as the world’s No. 2 producer of ethylene glycol to the top of the ladder, the statement said.
SABIC, the Middle East’s largest petrochemicals producer, posted record profits of SR6.71 billion ($1.8 billion) on sales of SR47.1 billion ($12.56 billion) last year.
Production in 2003 rose to 42.3 million metric tons from 40.6 million metric tons the previous year. On May 9, Japan’s Sumitomo Chemical Co. signed a deal with Saudi Arabia that set the stage for the development of a $4.3-billion refining and petrochemical complex, also on the Red Sea.