Sipchem
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Saudi International Petrochemical Company (Sipchem)is a Saudi joint stock company owned jointly by private sector investors of Saudi Arabia and GCC countries. It was incorporated on 22nd December 1999 with a paid-in capital of SR 500 million. The share capital was initially increased in 2003 by issuing 3 million shares, thereby raising the capital to SR 650 million. Subsequently, in April 2005 the share capital was further raised for the second time by SR 850 million resulting in a total share capital of SR 1.5 billion. Mission Statement To provide competitive and quality petrochemical products through development of safe, environmentally sound and reliable facilities to satisfy our customers, motivate our employees and meet shareholders expectation. Vision Statement To be a responsible, innovative, and globally recognized petrochemical company maximizing the benefits of investments synergies and strategic alliances.
Investment, Growth and Sustainable Development Prospects. Saudi International Petrochemical Company (Sipchem) has chosen Jubail Industrial City to build its industrial complex for producing various chemicals because this city is considered one of the leading industrial areas in the world having all necessary infrastructure for such large projects. The availability of raw materials in the Eastern province, the presence of Saudi Aramco that supplies required feedstocks at very competitive prices and in large quantities, the ease of export from the city via KFIP and its relative proximity to South Eastern Asian countries to which most petrochemicals are exported, are other reasons for this choice.
The site of Saudi International Petrochemical Company (Sipchem) occupies an area of over one million square meters in the basic industries part of Jubail Industrial City. Sipchem's strategy aims at integrating present and future petrochemical and chemical products to form a series of final added-value products in order to contribute to increasing the national production, developing the industry under the comprehensive development plans adopted by the Kingdom and multiplying shareholders' profits and yields.
As a part of the first phase of its plan, Sipchem is executing a methanol plant with a capacity of about 1 million MTPY, and a BDO plant with 75,000 MTPY..
Sipchem is planning to construct a world class olefins and derivatives complex as a joint venture with leading world companies in order to utilize economically proven modern technologies. It has also made great progress in building projects for manufacturing added-value products including AA and VAM from the methanol series as part of the second phase of its plan. Also, there are plans that will materialize in the near future for the production of final derivatives from the company’s products.
Sipchem is characterized by creativity and integration. Its management believes in challenge and team spirit and endeavours to overcome all the difficulties for achieving success. Therefore, this management is completely aware of its entire obligations and responsibilities towards its distinguished customers and partners, nationally and internationally.
For the attainment of sustainable growth according to a special strategy that links the company's present with its future, Sipchem continuously explores the prospects of development and renovation to facilitate the process of desired growth and expansion. It also invites all top companies and commercial organizations that are interested in long term relationships and secure dealing with our products or in enhancing our activities, to introduce their modern technologies and provide marketing services for meeting the requirements of our customers in an efficient and effective manner.
Upcoming Projects: Acetyls Complex Project
The Saudi International Petrochemical Company (Sipchem) announced that it had commenced construction works for building the Acetyls Complex, which consists of three plants: the Acetic Acid plant (460 thousand tons per annum), the Vinyl Acetate Monomer plant (300 thousand tons per annum) and the Carbon Monoxide plant (345 thousand tons per annum) in addition to the utilities and offsite facilities at King Fahad Industrial Seaport in Jubail. This complex will be located at Sipchem`s site in the industrial city of Jubail. According to the stated plan of the project, this complex will start commercial operation in early 2009. Being the first of its type in the Middle East region, this complex constitutes a great achievement for Sipchem and its affiliates and its completion will be in line with Sipchem`s vision and stated objectives of investment in value-added petrochemical projects that would realize optimal returns for the shareholders. This SR 4-billion project represents the second phase of Sipchem`s projects.
Fluor Canada will be in charge of building the Acetic Acid plant and the Vinyl Acetate Monomer plant, while Lurgi AG (Germany) / AirLiquide JV (France) will be in charge of building the Carbon Monoxide project.
Recruitment for the creation of these petrochemical plants will be mainly be based with UK companies. Currently the list stands at over 200 vacancies, including Operations Managers, Cost Controllers, Site Superintendents, Electrical and Mechanical engineers.
The Acetic Acid and the Vinyl Acetate Monomer projects will be jointly owned by the Saudi International Petrochemical Company (Sipchem) and Helm Arabia GMBH (Germany), whereby the two partners will be in charge of marketing the Acetic Acid and Vinyl Acetate Monomer products in the global markets.
The ownership of the Carbon Monoxide project will be shared by the Saudi International Petrochemical Company (Sipchem) and the National Power Company (Saudi Arabia).
In this regard, Mr. Ahmed Al-Ohali, Sipchem President remarked that this project would create over 500 direct job openings. Mr. Ohali added that a few months ago Sipchem had recruited more than 100 young Saudi high school graduates who are now receiving training at specialized pre-service training centers and will join the projects` working team after graduation. Mr. Ohali also added that products of the new complex would open up a wide scope for various other processing industries in the Kingdom.
The Saudi International Petrochemical Company (Sipchem) is a Saudi joint stock company established in late 1999. Sipchem currently operates a Methanol plant with an annual production capacity of one (1) million tons and a Butanediol plant with a production capacity of 75 thousand tons per annum. It is to be noted at this point that on Saturday 09 September 2006, Sipchem will be offering 30% of its shares to the public.
