Daelim Industrial signs for Sahara-Maa'den plant

The new plant will create around 200 jobs, according top Sahara Petrochemicals.

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Daelim Industrial, the Korean contractor, has signed the agreement with Sahara Petrochemicals and Saudi Arabian Mining Company (Maaden) for the caustic soda and ethylene dichloride project in Jubail Industrial City.

The company will begin with preliminary work for the $750m (SAR 2.812bn) project in the Sahara PCC complex on the back of a 34-month Early Work Agreement announced 7th March.

The caustic soda and ethylene dichloride is a 50-50 joint-venture between Sahara PCC and Ma’aden using German UHDE technology. The plant will have a production capacity of 250,000t/y of high grade sodium hydroxide and 300,000 t/y of ethylene dichloride. The project is funded through bank loans and a loan from Saudi Industrial Development Fund.

The construction of the project will be completed in the fourth quarter of 2012, according to Esam Fouad Himdy, managing director of Sahara, in a statement to investors on the Tadawul in Riyadh.

Saleh Mohammed Bahamdan, executive president of Sahara PCC, added that the project “will provide approximately 200 job opportunities but will increase accordingly with the gradual expansion of the company's projects”.

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Daelim Industrial is a listed company that has an engineering & construction division and one specifically for petrochemicals. The company also builds bridges, highways, tunnels, harbours, and government buildings and has been aggressively expanding its presence throughout the Gulf on industrial and infrastructure projects.

In January it was revealed that it had signed a deal with Mohammad Al Mojil, the Saudi civil contractor, to carry out mechanical and electrical projects in the Kingdom’s western region worth $68.2m (SAR 256m).

Shares in Daelim Industrial fell 0.98% on Friday in Seoul to close at KW 100,500.