SABIC awards $1.6 bln chemical supply contract to Aarti Industries

Saudi Basic Industries Corporation's (SABIC) has awarded a $1.56 billion contract to India's Aarti Industries Ltd for the supply of speciality chemicals intermediate to its US affiliate.

In a recent statement issued to the Bombay Stock Exchange, Aarti Industries said it will supply a high-value speciality chemical intermediate to SABIC Innovative Plastics US LLC over a period of 20 years, with the supplies expected to commence from 2020.

Under the terms of the agreement, the SABIC unit will be providing $42 million as an advance to Aarti Industries in instalments, which shall be adjusted against the supplies in future, the statement said.

Last week, SABIC’s 75 percent-owned subsidiary Jubail United Petrochemical Co. awarded the EPC services contract for the third ethylene glycol plant to expand operations in Jubail complex to South Korea’s Samsung Engineering.