Beirut (APD) - The Saudi Basic Industries Corporation (SABIC) signed a contract with Italian engineering and construction services firm Technip, SABIC said on Wednesday in a statement on the Saudi Stock Exchange website, Tadawul.
Under the contract, Technip would design, supply and construct ethylene and propylene production units in the manufacturing complex of the National Petrochemicals Company (Yansab) in Yanbu industrial city in Saudi Arabia.
On Monday, SABIC had signed a similar contract with Japan's Toyo Engineering Corporation (TEC) for the design, supply and construction of a glycol ethylene plant at the same complex.
Technip and TEC are leading international contractors and equipment suppliers in the petrochemicals industry. SABIC did not divulge the value of the deals nor the time frame for the implementation of the projects.
The Yansab complex, currently under construction in Yanbu, is scheduled to enter into production in 2008. At current planning, the complex will include seven large petrochemicals plants with a combined annual capacity of 4 million metric tons.
The complex has a required capital of SR5.625 billion (US$1.5 billion), of which SABIC plans to retain a 55% stake and offer another 10% to its partners in two SABIC affiliate companies, Arabian Industrial Fibers Company (Ibn Rushd) and TAYF.
The remaining 35 percent in Yansab capital, amounting to SR 2 billion (US$533 million), will be offered for public subscription at SR 50 (US$13.30) per share. The date of public subscription would be announced after approval by regulatory authorities, SABIC said.
On November 26, SABIC announced that it entered into an agreement with Samba Financial Group as financial advisors on the planned public subscription in Yansab. [TS]
By Shikrallah Nakhoul, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2005
