Germany's Krupp to Build a New Petrochemical Plant in Iran

November 1, 2000 - 0:0
LONDON A subsidiary of Germany's engineering firm Thyssen Krupp has won a contract to build a high-density polyethylene (HDPE) plant in Iran.
According to the weekly Middle East Economic Digest (MEED) Iran's National Iranian Petrochemical Company (NIPC) has chosen Krupp Uhde to build the plant in Bandar Imam Khomeini's special zone.
It won the contract against stiff competition from a partnership of Japan's Mitsui and company and the local firm, Petrochemical Industries Design and Engineering Company (PIDEC).
Once financing details have been agreed, the German firm, which is to work with Iran's Sazeh Engineering Company, is expected to build the plant in 26 months, adding 300,000 tons a year to the growing petrochemical capacity of the country.
It will not only provide Basell's Hostalen technology in the production process, but also basic engineering and equipment as well as providing technical assistance and supervision of construction.
The provision of detailed engineering and supply of locally made equipment will be the responsibility of Sazeh engineering.
The plant will be just one of the downstream units at the Olefins 7 complex to be run by NIPC subsidiary Maroun Petrochemical Company.
Financial details of the contract are as yet unclear but meed suggested the contract is "likely" to be worth "under euro 550 million ($30m)", financed by a syndicated loan arranged by Germany's Deutsche Bank.
NIPC has been awarding many contracts in recent months with a $333 million contract for the main facilities at Olefins 7 awarded to another German firm, Linde, last summer.