Sahara International Petrochemical Company “Sipchem” (2310) has signed contracts to expand two of its propylene and polypropylene plants with a total investment of USD 169 million (SAR 634 million).
Increased Production Capacity
Sipchem noted that the additional production capacity for its subsidiary “Al-Waha” will total 72,000 tons of propylene and 150,000 tons of polypropylene. After the expansion, the total production capacity will amount to approximately 537,000 tons of propylene and 600,000 tons of polypropylene.
So what
Sipchem mentioned that the 28-month expansion project reflects its “ongoing efforts” to enhance production capacity and efficiency. The company expects the “financial impact” to materialize by the fourth quarter of 2026.
Additionally, the increased production of polypropylene is expected to significantly contribute to several industries, including the automotive, fibers, and food packaging sectors.
Some context
Sipchem’s net profit dropped by nearly 61% YoY in the second quarter of this year, reaching SAR 121.5 million. The company incurred higher sales costs from April to June due to increased feedstock and raw material prices.
