Riyadh – Mubasher: Advanced Polyolefins Industry, a subsidiary of Advanced Petrochemical Company, has signed $191.25 million engineering, procurement and construction contracts (EPC) for the construction of an Isopropanol (IPA) plant with 70,000 tonnes per annum (TPA) capacity with all required off-sites in Saudi Arabia’s Jubail Industrial City.
The contracts were signed with South Korean SGC eTEC Company and SGC Arabia Company with a total duration of 32 months, according to a bourse filing.
German company thyssenkrupp Uhde Engineering Services is set to provide the technology used in the project.
The financial impact of the project is anticipated to take place following the commencement of commercial operations, slated for the fourth quarter (Q4) of 2026.
The production of IPA is part of Saudi Arabia’s downstream industry strategy which comes in line with the Kingdom’s Vision 2030.
IPA is used in a variety of industries including industrial solvents, medical and cosmetics applications, electronics, and other downstream applications.
In October 2020, Advanced Petrochemical amended a $1.80 billion shareholders' agreement inked between its subsidiary, Advanced Global Investment Company (AGIC), and SK Gas Petrochemical Pte (SKGP) to add an IPA plant for about $80 million with a capacity of 70,000 TPA.
It is worth noting that Advanced Petrochemical posted a net profit of SAR 171 million in 2023, down 42.03% from SAR 295 million registered in 2022.
