Fluor lands key Saudi aluminium plant contracts

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Fluor Corp has secured three main contracts for Ma'aden’s planned Saudi-based aluminium joint-venture with Alcoa.

The Ma’aden-Alcoa joint venture, agreed in December, is developing the most advanced integrated aluminum complex in the world, including a bauxite mine, alumina refinery, aluminum smelter and a can sheet rolling mill. First production from the aluminum smelter and rolling mill is anticipated in 2013, and first production from the mine and refinery is expected in 2014.

The first contract with WorleyParsons and Fluor covers the engineering, procurement and construction management (EPCM) services for the bauxite mine and alumina refinery for SR758 million ($202 million); a second contract covers the $177m EPCM contract for the high-technology can sheet rolling mill, was signed with Fluor Enterprise; and the third, covering the contract for management of services at the complex and engineering works and supervision of infrastructure at the Ras Az Zawr Aluminium complex, was secured by Fluor Arabia for US$74m. Total contract worth is US $453m (AED 1.6bn).

Ma’aden President and CEO, Dr Abdallah Dabbagh said, “The signing of these contracts today confirms the commitment of both Ma’aden and Alcoa to create an integrated aluminium industry based on the Kingdom’s considerable resources including bauxite and energy. The integrated nature of this project makes it unique and once completed, it will become a highly competitive long term supplier to both domestic and international markets.”

Fluor's track record in the industry is impressive. The company, in a joint venture with Raytheon Engineers and Constructors, designed and built a $1.5 billion grassroots refinery for the Rayong Refinery Company (Rayong), a joint venture of Petroleum Authority of Thailand, the Thai National Oil Company, and Shell International.

It also performed engineering, procurement, and construction (EPC) on the world’s largest greenfield mining project at the time on the remote island of Sumbawa in Indonesia with no infrastructure, a sparse and unskilled workforce and amid economic and political turmoil.

Fluor provided environmental oversight, procurement, construction, commissioning, testing, and training on a 1,230-megawatt pulverised coal-fired power plant in Paiton, East Java, Indonesia.