NPC, DSM finalise joint venture

24 May 2002

National Petrochemical Company (NPC)and DSMof the Netherlands on 17 May signed a joint venture agreement for setting up a new low density polyethylene (LDPE) facility. The joint venture also includes the local Poushineh Baft Iran(MEED 14:12:01).

The new plant will be located at the Marun petrochemical complex, also referred to as the olefins 7 project. NPC has a 45 per cent share in the joint venture, with DSM and Poushineh holding 35 per cent and 20 per cent respectively. Fixed capital in the plant is $200 million, with another $40 million not fixed.

Germany's Lurgiand the local Sazeh Consultantsare engineering, procurement and construction (EPC) contractors on the scheme.

The deal represents NPC's first co-operation with Saudi Basic Industries Corporation (Sabic), which in April acquired a majority stake in DSM (MEED 5:4:02). Sabic and NPC are also carrying out a joint feasibility for the olefins 11 project, which is understood to be at an advanced stage.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications