Sipchem Greenlights $169 Million Expansion Contract for Enhanced Facilities

Sahara International Petrochemical Company (Sipchem) has recently awarded significant engineering, procurement, and construction contracts worth $169 million for a major expansion of its subsidiary, Al-Waha Petrochemical Company’s propylene and polypropylene plants. This expansion is a strategic move to increase the production capacities of these critical facilities and enhance Sipchem’s operational capabilities.

The expansion project is set to add 72,000 tonnes to the annual production capacity of propylene and 150,000 tonnes to that of polypropylene. Once the project is completed, the total production capacity for propylene will rise to 537,000 tonnes, while polypropylene capacity will reach 600,000 tonnes. This substantial increase in production capacity is expected to significantly strengthen Sipchem’s market position and enable it to better meet the growing demand for these materials.

The awarded contracts, which have a duration of 28 months, have been allocated to SGC E&C Company and SGC Arabia Company. These companies will be responsible for executing the engineering, procurement, and construction work necessary to complete the expansion. The entire expansion process is anticipated to be completed within the 28-month timeframe outlined in the contracts.

Sipchem's decision to undertake this expansion aligns with its broader strategic objectives of improving production efficiency and expanding its operational footprint. The enhanced production capabilities will support a range of industries, including automotive, fiber, and food packaging films. Propylene and polypropylene are vital raw materials for these sectors, and the increased output will help Sipchem meet the diverse needs of its industrial clients.

The expansion is part of Sipchem’s ongoing efforts to advance its production facilities and operational processes. By investing in this project, Sipchem aims to achieve greater efficiency in its operations and strengthen its competitive edge in the petrochemical industry. The company’s commitment to enhancing its production capacity reflects its dedication to growth and its proactive approach to addressing market demands.

The company has stated that any further developments or updates related to the expansion will be communicated in due course. This approach ensures that stakeholders and the public will be kept informed about the progress and impact of the expansion project as it unfolds.

Overall, the $169 million investment in expanding Al-Waha Petrochemical Company’s propylene and polypropylene plants marks a significant milestone for Sipchem. The project is expected to deliver substantial benefits by increasing production capacities, supporting key industries, and contributing to the company's strategic growth objectives. The successful completion of this expansion will reinforce Sipchem's role as a leading player in the global petrochemical market.