MOSCOW (MRC) -- Sipchem Chemicals Company (SCC), an affiliate of Saudi's Sipchem, has signed on July 22, 2013 an incorporation agreement with Hanwha Chemicals Corporation to form a new company, under name of "Saudi Specialty Products Company" for establishing conversion projects in Saudi Arabia. according to Sipchem's press release.
This move was down "in line with the company's commitment to implement what has been stated at volume of fuel and feedstock allocation required to establish EA, EVA, WCC and conversion industries issued by Ministry of Petroleum and Mineral Resources".
The Joint Venture between SCC and Hanwha comprised of 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. It is noteworthy that Sipchem Chemicals Company owns 75% of new company capital while Korean Hanwha owns 25%.
Sipchem Chemicals Company will use state of the art technology of Mitsui Chemicals Tohcello (MCTI) Inc. Japan, for the EVA film project and Kiefer Werkzeugbau GmbH, Germany, knowhow transfer and project services for moulds project.
Total investment for these conversion projects will be approximately SR 225 Million (US Dollars 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 towards 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 dies used in plastic and encapsulation plants.
Sipchem has confirmed that its approach to join hands with major players in the global petrochemical business to support Saudi Arabia downstream manufacturing investments.
We remind that, as MRC wrote previously, in December 2012, Sipchem launched the construction of its EVA films project in Hail Industrial City. The SR 120 million plant will manufacture 4,000 tpa of EVA films. The project will be financed by the company and other local backers and is expected to be operational by Q3-2013.
Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC