Sipchem Signs $187 Million Contracts to Expand Ethylene Vinyl Acetate Plant

Sahara International Petrochemical Company (Sipchem) announced on Tuesday the award of engineering, procurement, and construction contracts valued at $187 million for the expansion of the Ethylene Vinyl Acetate (EVA) plant of its affiliate, International Polymers Company. The expansion project is expected to take 40 months to complete.

The additional production capacity is set to be 70,000 tons of high-grade Ethylene Vinyl Acetate, bringing the total production capacity after the expansion to approximately 290,000 tons per year.

Sipchem stated in a Tadawul announcement that the financial impact is expected to be reflected after the project’s completion in the fourth quarter of 2027. The company emphasized that this project aligns with its efforts to produce high-value products. The high-grade Ethylene Vinyl Acetate product supports multiple industries, including the manufacture of solar power cell encapsulants, hot melt adhesives, and other applications.

Sipchem assured that any material developments related to this project will be announced in accordance with relevant regulations and instructions.