SABIC signed recently a contract with the German contractor, Uhde, for the construction of a new bimodal HDPE (high density polyethylene) plant at its production site in Gelsenkirchen, Germany. The new 250 kt/y plant will come on stream in the fourth quarter (Q4) 2008 and will replace the current 100 kt/y PE plant in Gelsenkirchen. The investment in the new project, including the infrastructural improvements at the site, is around € 200 million. “I am pleased that after more than two years of dedicated work, we have decided to start with the construction of the plant,” says Abdullah Bazid, Managing Director Chemicals & Intermediates. “The investment in the Gelsenkirchen site is a positive signal for the site to become even more competitive as against other petrochemical sites in Europe. We will be able to enhance our cost position in Europe and satisfy our customers.” This investment is in line with SABIC's growth strategy in Europe. Koos van Haasteren, Managing Director Polymers says: “This project will further strengthen SABIC's leading position in the fast growing market for the bimodal pipe business.” The Gelsenkirchen production site - formerly Vestolen - was acquired in 1997. The site has since undergone continuous modernization and expansion. After completion of the new plant more than € 500 million has been invested in the Gelsenkirchen facilities. The production has gone up from 250 to 1100 kilo tons per year since 1998, according to a report of SABIC-EUROPE. “A lot of effort has been successfully made in the past years to optimize the site. This investment will further strengthen Gelsenkirchen's competitiveness,” says Jan van den Berg, Managing Director at Gelsenkirchen. “The investment of € 200 million will further secure the future of the site and will be a positive contribution to the regional economy of Nord-Rhein Westfalen.”
