SGC E&C Secures $366 Million Contract for Saudi Arabia Chemical Plant

SGC Engineering & Construction (SGC E&C), a leading firm in engineering, procurement, and construction (EPC), announced a significant milestone on Wednesday with the signing of a chemical plant project contract with Saudi International Petrochemical Company (Sipchem). The contract, valued at 490 billion won (approximately $366 million), is a major win for SGC E&C as it continues to expand its global presence in the EPC sector.

The project is divided into two key contracts. The first, secured on August 7, involves the construction of an ethylene vinyl acetate (EVA) production facility, valued at 260 billion won (around $194 million). Ethylene vinyl acetate is a versatile copolymer used in a variety of applications, from packaging to solar panel encapsulation, making this facility a critical addition to Sipchem's production capabilities.

Following this, on August 26, SGC E&C won an additional contract worth 230 billion won (approximately $172 million) for the construction of a PDH/PP facility. This facility is designed to produce polypropylene (PP), a widely used plastic, by combining propylene, which is generated through the propane dehydrogenation (PDH) process, with ethylene. This project highlights SGC E&C's expertise in handling complex chemical processes and its ability to deliver comprehensive EPC services.

SGC E&C's role in these projects will encompass the entire construction process, including engineering, procurement, and construction, ensuring that the facilities meet the highest standards of quality and efficiency. The company's success in securing these contracts underscores its growing reputation as a reliable partner in the Middle East's rapidly expanding petrochemical sector.

This latest achievement in Saudi Arabia builds on SGC E&C's previous successes in the region. Earlier this year, the company secured contracts for an ethylene-propylene facility valued at 690 billion won ($518 million) and an isopropyl alcohol (IPA) facility worth 250 billion won ($188 million). These contracts have collectively contributed to over 1.4 trillion won ($1.05 billion) in new orders from Saudi Arabia in 2024, marking a significant boost to the company's international portfolio.

In addition to its success in Saudi Arabia, SGC E&C has also expanded its footprint in Southeast Asia, winning a chemical plant construction project in Malaysia valued at 332.3 billion won ($249 million). These strategic wins demonstrate SGC E&C's commitment to growing its global presence and solidifying its position as a leader in the EPC industry.

As a leading and ambitious petrochemical company, Sipchem is committed to delivering excellence through its sustainable, high-quality polymer and petrochemical products. Since company inception in 1999, Sipchem have experienced consistent growth and success, allowing to establish a market presence in over 100 countries. Today, Sipchem offer more than 15 products and employ 1,442 individuals from 27 different nationalities.