Aker Kvaerner has agreed a strategic joint venture with China Petrochemical Corporation (SINOPEC Group) to execute a world scale polyolefins project for Saudi Basic Industries Corporation (SABIC). Aker Kvaerner will be the joint venture leader with expected involvement in the region of $400 million. The total contract value has not been disclosed.

The joint venture will provide engineering, procurement and construction for a Linear Low Density Polyethylene (LLDPE) plant and a Polypropylene (PP) plant, together with the associated product handling facilities. The new plants, part of a major new ethylene complex, will each have a capacity of 400,000 tonnes per annum. The PP plant will use Dow's Unipol polypropylene technology, whilst the polyethylene plant will utilise SABIC's LLDPE technology.

The project will commence shortly and the complex is expected to start production in April 2008.