Riyadh – Mubasher: International Polymers Company, affiliated to Sahara International Petrochemical Company (Sipchem), has awarded $187 million contracts for the expansion of its ethylene vinyl acetate plant.

Signed on 1 July 2024, the contracts include adding additional annual production capacity of 70,000 tonnes of high-grade ethylene vinyl acetate to IPC’s plant, bringing its total output to 290,000 tonnes per year, according to a bourse filing.

The engineering, procurement, and construction contracts have a duration of 40 months.

International Polymers awarded the contracts to SGC E&C and SGC Arabia companies.

The high-grade ethylene vinyl acetate product serves various industries, including the manufacturing of solar power cell encapsulants, hot melt adhesives, and other applications.

The financial impact is expected to take place after the project completion by the fourth quarter (Q4) of 2027.

In Q1-24, Sipchem’s net profit dropped to SAR 181.50 million, compared to SAR 470.30 million in Q1-23.