SABIC Europe, Uhde Sign Contract To Build New HDPE Plant In Germany
Saudi Basic Industries Corporation’s (SABIC) subsidiary SABIC Europe on 31 July signed a contract with the German contractor Uhde for the construction of a new bimodal HDPE (high density polyethylene) plant at its production site in Gelsenkirchen, Germany. The new 250,000 tons/year plant is expected to come on-stream in 4Q 08, replacing the current 100,000 t/y polyethylene plant there. The investment in the new project amounts to around €200mn ($254.66mn) and is in line with SABIC’s growth strategy in Europe. The project will further strengthen SABIC’s leading position in the fast growing market for the bimodal pipe business, said Managing Director Polymers Koos van Haasteren. In February last year, SABIC EuroPetrochemicals announced that jobs would be cut at the Gelsenkirchem polyolefins plant as part of an upcoming reorganization of the plant due to the latter’s unsatisfactory production activities and sales (MEES, 21 February 2005).
New Logistic Hub In Poland
SABIC on 27 July announced that SABIC Europe planned to expand its polymer supply network in central eastern Europe by opening a logistic hub in Poland. A major warehouse operation for polymers imported from Saudi Arabia will be established in Kutno, Poland. The hub is expected to be operational from January 2007. “By opening a hub in Poland, SABIC underlines its dedication to create more value for its Central and Eastern European customers by securing local supply, reducing delivery lead times and increasing delivery reliability,” said SABIC Europe Demand Chain Management Director Marc Houtermans.
