Riyadh - SABIC's affiliate, Eastern Petrochemical Company (SHARQ), has recently entered into three contracts with Stone & Webster Limited, Foster Wheeler Energy Limited - United Kingdom and LINDE-KCA-Dresden GMBH - Germany, for the implementation of a mega expansion project at its complex in the Jubail Industrial city. The new project's full capacity is expected to go on-stream by 2008.
The three contracts were signed by Dr. Abdulazzez Al-Jarbu , Chairman, SHARQ's Board of Directors, Mr. Tim Barfield Chief Executive Operations, Stone & Webster Limited, Mr. S.J. Davies Chairman & Chief Executive of Foster Wheeler Energy Limited, and Dr. Helmut Honnicke of LINDE-KCA-DRESDEN GMBH.
Stone & Webster Limited will carry out the engineering, supply and construction of Ethylene Plant with a designed annual capacity of 1.3 million MT. The project completion date is scheduled for 2Q2008. Foster Wheeler Energy Limited will construct the utilities & offsite (U&O) facilities for SHARQ 3rd Expansion Project, while LINDE-KCA-DRESDEN GMBH will engineer, supply and construct the Linear Low Density (LLDPE) and high density (HDPE) polyethylene plants, with total annual capacity of 800,000 MT which is expected to go on-stream by Q2 2008.
Established in 1981, SHARQ is a joint venture equally owned by Saudi Basic Industries Corporation (SABIC) and SPDC Ltd, a Japanese consortium led by the government of Japan and the Mitsubishi group of companies. Production started in1985. The first expansion project was completed in 1993 and a second expansion was completed in 2001. SHARQ's expansion project will add 2.8m MT annually to SABIC's production which will exceed 5 million MT and will further enhance SHARQ's position as the world's largest single producer of Ethylene Glycol. This will also enhance SABIC's global ranking alongside the other global petrochemicals producers of EG. SABIC is currently ranked 2nd and is expected to become number one once this project comes on stream. SABIC is the world's 3rd largest producer of polyethylene and number four for polyolefins
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About Saudi Basic Industries Corporation (SABIC)
Saudi Basic Industries Corporation (SABIC) is the largest company in the Middle East by market capitalization (at US$ 23.4 billion) and the 11th largest petrochemicals manufacturer in the world. It is a market leader in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers.
SABIC's profit rose to a record SR 14.25 billion (US$ 3.80 billion) in 2004, a 113% increase on 2003 and the company's highest profit since inception. Sales revenues for 2004 totaled SR 68.738 billion (US$ 18.4 billion), an increase of 47% on revenues in 2003.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 16,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia - in Al-Jubail and in Yanbu - comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 42.9 million metric tons of production in 2004.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases released in oil production as the raw material for the production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC EuroPetrochemicals (SEPC), the Company's operation in Europe, has its headquarters in Sittard in the Netherlands. It operates two petrochemical production sites in Geleen, Netherlands and Gelsenkirchen in Germany for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons. SEPC sells 2.6 million tonnes of polymers annually, mainly to the European market, and employs 2,300 people.
Press Release 2005