Addar Chemicals Company, a leading conglomerate in Saudi Arabia, has awarded a $35-million engineering, procurement and construction (EPC) contract to Indian group Nuberg Engineering for a chemical plant in the kingdom.

The turnkey contract for Addar's Greenfield Sulfolane and speciality chemical plant in Saudi Arabia is a major win for Nuberg, which is a specialised EPC contractor for chemical plants, said a statement from the company.

Nuberg said the scope of the work includes residual engineering, procurement, supply, construction, fabrication and commissioning at the plant. The entire chemical plant project is estimated to be worth $60 million.

Larsen & Toubro (L&T), one of India's largest conglomerate, is the detail engineering partner of the chemical plant, while the technology and basic engineering partner of the project is US-based GTC Technologies.

Nuberg said the project was won against competitive bids from several major international EPC contractors originating from India, Saudi Arabia, Korea and Europe.

Located in Jubail Industrial City, the new facility will manufacture Sulfolane and other specialty chemical products for downstream and petrochemical/oil and energy industry.

Once the plant starts operation, it will supply to the local Saudi market as well as the wider Middle East and Africa (MEA) and the Gulf region, said Dr. Ibrahim Ibn Salamah, the chairman of Addar Chemicals Company.

Also, it may cater to markets having similar critical needs, including Eastern Europe, India, China and South East Asia, stated Dr Salamah, a former managing director and vice chairman at Saudi Basic Industries Corporation (Sabic).

One of the largest green-field specialty chemical complex with various upcoming new products for the downstream and petrochemical/oil and energy industry, the project is scheduled to commence during the first quarter of 2017, he added.

Nuberg Engineering managing director AK Tyagi said: "Being a specialised EPC supplier for chemical plants, Saudi Arabia is a core country for our business and Addar our key customer. This contract represents another significant step in building our capability and consolidating our position as a major EPC company of Indian origin in the Mena and Gulf region."

"Jubail is one of Nuberg's most remarkable achievements and with this project we get to penetrate into one of the world's largest industrial area," he added.

Tyagi pointed out that Jubail was the hub for all the major global EPC suppliers and entry in the area was definitely a huge leap of growth.

"We have a proven track record of two decades in EPC projects, operations maintenance and engineering services, underpinned by our strong local technical capability," he noted.

"This EPC project for a specialty chemical plant is an excellent illustration of our strategy in action and is an ideal opportunity to support our longer-term competitive edge in Saudi Arabia," he added.

Dr Salamah said the new facility will escort enhanced capabilities and capacity to ACC's business in the country and will pave a perfect road to diversify employment opportunities for the people.

Nuberg, he stated, had consistently displayed extensive knowledge and experience across various other EPC projects worldwide and Addar was confident that the team would bring significant value to the project.

"We look forward to working with Nuberg as we bring this chemical project to life," he added.-TradeArabia News Service