SIPCHEM Chemicals Company (SCC), an affiliate of Saudi International Petrochemical Company (Sipchem), signed Monday an incorporation agreement with Hanwha Chemicals Corporation to form a new company under name of Saudi Specialty Products Company for establishing conversion projects in Saudi Arabia. The joint venture between SCC and Hanwha comprised of two manufacturing facilities – the first one located at Hail will produce 4,000 MTPA of EVA films; the second located at Riyadh will manufacture plastic molds up to 1000 tons. Sipchem Chemicals Company owns 75 percent of new company capital while Korean Hanwha owns 25 percent. Sipchem Chemicals Company will use state of the art technology of Mitsui Chemicals Tohcello (MCTI) Inc. Japan, for the EVA film project and Kiefer Werkzeugbau GmbH, Germany, know-how transfer and project services for molds project.
Total investment for the conversion projects is approximately SR225 million ($60 million) and will create around 180 jobs. EVA film is used for crystalline silicon and thin film solar photovoltaic module production. EVA film is selected to be the most optimum material for the encapsulation and it is widely used for solar cell encapsulation and perceived to be the most operating-friendly and cost effective material for solar cell glass encapsulation. The project is the first-of-its kind in the region and illustrates Sipchem commitment towards the Kingdom objective to become a driving force in renewable energy.
Molds Manufacturing Facility, located in Riyadh, has been designed to manufacture various types of molds and dies used in plastic and encapsulation plants. The facility has infrastructure to design any industrial or commercial product and thereafter make prototypes of the article, and produce the product in mass by building a mold or tool for the purpose. The facility can test the performance of the mold or die to the required standards. The Riyadh facility will help the convertor industries of polymer, metal sheets, and aluminum to obtain tools and dies to exact requirements. In addition to manufacturing new molds and tools, the facility will assist in servicing and maintenance of existing molds and dies. The know-how provider, Kiefer, has vast experience in the tool and dies manufacturing field. Sipchem said the projects will play a major role in the Kingdom’s industrial diversification and boost development in the conversion industry. Sipchem added that partnership with major global players in the petrochemical business will support Saudi Arabia’s downstream manufacturing investments. — SG
