Italian engineering company Maire Tecnimont announced on Tuesday that its subsidiary Tecnimont SPA and Tecnimont Arabia have been awarded a $500 million lump-sum turnkey engineering, procurement and construction contract by Saudi Arabia’s Advanced Global Investment Company (AGIC). 

The company said in a press statement it has been awarded the contract to build two Polypropylene Units for AGIC’s Integrated PDH-PP (propane dehydrogenation - polypropylene) complex project  

The scope of work entails complete engineering services, equipment and out of kingdom material supply (to be performed by Tecnimont) and in kingdom material supply, erection and construction activities up to start up and guarantee test run (to be performed by Tecnimont Arabia).  

The project completion is expected by the second quarter of 2024. 

The two Polypropylene Units will have a capacity of 400,000 tonnes per year each and will be located inside the Integrated PDH-PP complex in Jubail Industrial City II. 

AGIC is a wholly owned subsidiary of Advanced Petrochemical Company, a Saudi joint stock company established in 2005 and listed on the Saudi Stock Market since 2006. It manufactures polypropylene products for a range of industries including automotive, consumer product, healthcare, packaging, and textile.  

Maire Tecnimont Group Chief Executive Officer Pierroberto Folgiero said the contract “represents another significant milestone of our Gas Monetisation strategy, enabling us to be geared up for Saudi Arabia’s large wave of investments in downstream.” 

(Writing by SA Kader; Editing by Anoop Menon) 

(anoop.menon@refinitiv.com) 

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021