Reuters reported that 5 international engineering firms have bid to build 50,000 tonnes per year polyacetal plant at Ibn Sina an affiliate of Saudi Basic Industries Corporation.
SABIC said in 2010 the project, producing a plastic which is mainly used in the car industry would require investment of nearly USD 400 million.
Spain's Dragados, China National Chemical Engineering Company, Taiwan's CTCI, South Korea's Hanwha Engineering and SK Engineering and Construction have all made bids. Bidding closed on November 28 after it was extended from an October deadline.
National Methanol Company better known as Ibn Sina is 50% owned by SABIC the world's largest chemical company while Celanese Corporation and an affiliate of Duke Energy Corporation each have 25% stake. The plant was originally planned to start up by 2013 with engineering and construction work beginning by 2011.
SABIC's CEO said that last month the company has given the go ahead for the polyacetal plant which will use methanol feedstock from Ibn Sina.
Some Saudi petrochemical companies have said they have faced difficulties sourcing feedstock supplies for new projects as the oil rich kingdom balances their claims for gas supplies against the need to use it for power generation.
