Saudi Basic Industries Corporation (Sabic) and the US’ ExxonMobil Chemical has awarded the engineering, procurement and construction (EPC) contracts at the $3.4bn Elastomers project at Jubail in Saudi Arabia.   

South Korea’s Daelim Industrial has picked up three of the six packages on offer, while Spain’s Tecnicas Reunidas secured two and France’s Technip one. The awards are:

Daelim Industrial

  • Carbon Black
  • Methyl tertiary-butyl ether (MTBE)
  • Utilities and offsites

Tecnicas Reunidas

  • Ethylene propylene diene monomer (EPDM)
  • Polybutadiene rubber (PBR)


  • Halobutyl rubber plant (HRP)

The awards mark an exceptional week in the kingdom for both Daelim and Tecnicas Reunidas. MEED reported that Daelim has also recently secured a package at the $5bn PetroRabigh complex on the Red Sea coast and Tecnicas Reunidas had won a combined three packages at the $20bn Sadara Chemical Company complex, which is also being built in Jubail.

When completed, the facility will produce about 400,000 tonnes a year (t/y) of carbon black, rubber and thermoplastic speciality polymers. The plant will use ExxonMobil technology and the products will be sold on local and international markets.

Both Sabic and ExxonMobil have now approved the EPC phase of the scheme and the budget has gone up from the original estimate of $2bn to $3.4bn.

The project will be constructed at the Al-Jubail Petrochemical Company (Kemya) complex in Jubail, which is a 50:50 joint venture between Sabic and ExxonMobil.

Much of the output for the plant can be used in the production of components connected to the automotive industry, which falls in line with Saudi Arabia’s industrial diversification programme. 

The joint venture partners are also planning a High Institute for Elastomer Industries (HIEI) will be set up that will train Saudi Arabians to work in the elastomers industry. Facilities will be established in Yanbu, Riyadh and Jubail aimed at increasing knowledge and Saudi Arabians will also be sent to the US for further educational programmes.