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The National Petrochemical Industrial Company (Natpet) affiliate of Saudi petchems firm Alujain has awarded Italy’s Tecnimont a $65mn EPC contract to rehabilitate a polypropylene complex at Yanbu on the Saudi Red Sea coast.
Work will involve rehabilitating units damaged in a fire at the complex in October 2018. Pre-fire output capacity was 400,000 t/y. Natpet aims to bring the plant back online in October 2019. Although the plant is shut down, satellite imagery shows that the fire did not appear to damage all of its units.
Alujain is one of Saudi Arabia’s smallest petchems firms, with a market capitalization of $270mn. Although Alujain is partnered in Natpet by Saudi firm Xenel and government insurance agency GOSI, the cost of repairs will likely make a significant dent in its profits given that its last reported net profit was SR64mn ($17mn) for second quarter 2018. Alujain has struggled to submit financial results at the same time as other Tadawul-traded petchems firms following the introduction of new Tadawul financial reporting rules at the end of 2016 ( MEES, 18 August 2017 ). (CONTINUED - 174 WORDS)