SME to acquire 35 per cent stake in Mussafah

13 December 2002

Specialist Mechanical Engineers (SME) of South Africa has announced that it will acquire a 35 per cent equity stake in a new chemical plant to be set up at Mussafah in Abu Dhabi emirate. The deal, the value of which was not disclosed, is part of SME's offset obligations (MEED 11:10:02).

SME will take a 35 per cent stake in project promoter, the local Safewater Chemicals, which is majority owned by the Al-Jaber Group, also local. Safewater awarded in early October a contract to the local/South African Al-Jaber LTA Engineering & Contracting (ALEC) for building the first-phase facilities of a chlor-alkali plant.

The project calls for the construction of two production units with total capacity of 62,000 tonnes a year of sodium hypochlorite and related products, which will be manufactured through an electrolytic process using salt, water and electricity as primary feedstock.

The US' Ionics International has been awarded a AED 30.2 million ($8 million) contract for the supply of membrane cell electrolyser units. The US firm will outsource the supply of hydrochloric acid absorbers to SGL Acotec of Germany. France's GEA Kestner will design, supply and install the caustic soda evaporator.

The plant, estimated to cost AED 60 million ($16 million), is scheduled to start commercial production by October 2003. The UK's WS AtkinsInternational has carried out the process and detailed engineering works.

A MEED Subscription...

Subscribe or upgrade your current MEED.com 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