Zamil close to signing PP deal

20 December 2002

The local AH Al-Zamil Groupis in advanced negotiations with three international consortia bidding to become the group's partner for its proposed polypropylene (PP) plant at Jubail. The company is also moving ahead with a smaller project to produce carbon black - an additive used in rubber products (MEED 5:4:02; 15:2:02).

One of the consortia bidding for the PP project is expected to be selected by mid-February. Each is understood to include a technology supplier, a product offtaker and an engineering, procurement and construction (EPC) contractor.

The project's scope of works is still under discussion.

Zamil is preparing to issue in early 2003 an invitation to bid for the estimated SR 188 million ($50 million) EPC package on its proposed carbon black plant. The front-end engineering and design (FEED) package was prepared by the US' Jacobs Engineering.

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