Tecnicas Reunidas wins Al Jubail’s $400-million contract in Saudi Arabia

Spain's Técnicas Reunidas is the choice of Saudi Basic Industries Corporation (SABIC) and Exxon Mobil for the engineering, procurement and construction contract of the Saudi Elastomers Project. The selection was made through their 50-50 joint venture company, KEMYA. The operation is intended to produce an array of chemical feedstocks, elastomers and related products needed to support an automobile industry project to be undertaken in Al Jubail, Saudi Arabia.

The Spanish company TR said in a press release that it's bid had been successful

“amidst strong international competition.”

The scope awarded to TR includes Ethylene Propylene Diene Monomer (EPDM) and Polybutadiene Rubber (PBR) plants under a lump sum contract consisting of the engineering, supply of the equipment and materials, the construction of the plant and pre commissioning. The plants will be built on the existing KEMYA site in Al Jubail, Saudi Arabia. The technology licenses will be provided by Exxon Mobil for the EPDM plant and Goodyear for the PBR plant.

The plants are scheduled to be completed in 2015 with the EPDM

having a 35 month schedule and the PBR will be completed in 32 months. The contract has a value of over $400 million.

“With the award of this contract in the challenging Saudi market, in which TR has been working continuously since 2003, TR demonstrates the confidence gained by major international clients,” the company explained.

This award comes on the heels of another recent award by SABIC to TR of an ABS complex for PetroKEMYA, which confirms the ongoing partnership undertaken by the two companies. TR has collaborated with Exxon Mobil in projects in China and Qatar.

SABIC is a market leader in key products such as ethylene, ethylene glycol, methanol, MTBE and polyethylene. It operates in more than 40 countries across the world. Its headquarters are in Riyadh, the capital of Saudi Arabia. Exxon Mobil is the world’s largest refiner and marketer of petroleum products.



About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.