Sipchem selects HSBC as adviser for $1.1bn polymers plant

17 March 2010

UK bank will advise on development of petrochemicals scheme at Jubail

Saudi International Petrochemicals Company (Sipchem) has awarded the UK’s HSBC the mandate to act as financial adviser on the development of its $1.1bn polymers project at Jubail.

Several other banks are understood to have pitched for the mandate, including the UK’s Standard Chartered and France’s BNP Paribas. A source close to the project confirms that the mandate has now been awarded.

Sipchem began seeking a financial adviser for the project in February.

Sipchem is planning to develop a 200,000 tonne-a-year (t/y) ethyl vinyl acetate plant with production capacity of 125,000 t/y of polyvinyls. The plant is due to be completed in 2013, and will be a joint venture with South Korea’s Hanwha Chemicals Corporation.

HSBC is also working with the National Industrialisation Company (Tasnee) on a $1.5bn acrylic monomers scheme at Jubail.

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