Foster Wheeler Energy ties up deal with Saudi Arabian chemical firm

Foster Wheeler’s UK subsidiary, Foster Wheeler Energy, will coordinate engineering, procurement and construction for client Jubail Chemical Industries Company (JANA) until the project is completed in 2007.

JANA will use the factory to make the chemicals epichlorohydrin and chlor-alkali as part of a scheme it calls Project Hassad. The cost of the work has not been disclosed.

Alexander Denzler, general manager of Jubail Chemical Industries, suggested the contract would lead to further work for Foster Wheeler: “We have selected Foster Wheeler as the most fitting from a very competitive list of qualified companies.

“Project Hassad will be executed by several contractors located in different parts of the world and we require a project engineering services contractor that is a global organisation with a proven track record and the ability to integrate with our own team. Foster Wheeler meets these requirements.”

Steve Davies, chairman and chief executive officer of Foster Wheeler Energy, commented: “This award consolidates our already strong position in the petrochemicals sector in the Kingdom of Saudi Arabia, both with private investors and public companies. It reflects the quality and the depth of our technical and project execution expertise.”

The new facilities will produce 30,000 tonnes of epichlorohydrin per year, 50,000 tonnes of caustic soda and 45,000 tonnes of calcium choloride.

Epichlorohydrin is used in the manufacture of epoxy resins. The new facilities are to be built adjacent to JANA’s existing epoxy resin plant, where the company makes the glue Araldite.

The caustic soda will be used as feedstock for an existing soda plant operated by Arabian Alkali Company (SODA), which is also based in the Al-Jubail centre.

The calcium chloride will be crystallized into granules and sold mainly in the Gulf Co-operation Council member states.