Sipchem Awards SAR 634 Mln Contracts for Propylene and Polypropylene Plant Expansion

Sahara International Petrochemical Company (Sipchem) announced on Tuesday it has awarded engineering, procurement, and construction (EPC) contracts to expand the propylene and polypropylene plants of its affiliate, Al-Waha Company. The expansion will add 72,000 tons of propylene and 150,000 tons of polypropylene production capacity, with a total investment of SAR 633 million ($169 million). The project is expected to be completed within 28 months.

Sipchem, in a statement on the Saudi Exchange, noted that the contracts include enhancements to efficiency and increased output for the propylene and polypropylene facilities. Following the expansion, Sipchem expects to reach a total production capacity of approximately 537,000 tons of propylene and 600,000 tons of polypropylene.

The company anticipates the financial impact of the expansion to materialize upon project completion in the fourth quarter of 2026.