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Saudi Sipchem Says Production To Begin At $800m Plastics Plant

Saudi Sipchem Says Production To Begin At $800m Plastics Plant

The plant will make 200,000 tonnes per year of polyethylene and EVA, two forms of plastics.

A unit of Saudi International Petrochemical Co (Sipchem) will start commercial operations at its ethylene-vinyl acetate (EVA) and low-density polyethylene plant on Wednesday, Sipchem said.

Last year, Sipchem started testing the SAR3 billion ($800 million) plant in Jubail, which is owned by International Polymers Co (IPC).

This will make 200,000 tonnes per year of polyethylene and EVA, which are two forms of plastics used in packaging and as a component in other products.

The plant is 75 per cent owned by Sipchem. South Korea’s Hanwha Chemicals Corp owns the rest.

The impact of the plant’s production will be reflected in Sipchem’s second-quarter results, it said in a statement on Monday.

In December last year, Sipchem started testing another EVA plant in Hail, which it also shares with Hanwha Chemicals Corp.

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