Italian engineering company Maire Tecnimont secured a $500 million contract on Tuesday to build two polypropylene units at a downstream petrochemicals plant in Saudi Arabia.
The company has been awarded the engineering, production and construction contract to build the two units at an Integrated PDH-PP project being developed at Jubail Industrial City II by Advanced Global Investment Company, a subsidiary of the Kingdom's listed Advanced Petroleum Company.
“We are really enthusiastic to start a new valuable relationship with such a prominent client in one of our historical and most strategic markets in the petrochemicals sector," Maire Tecnimont's group chief executive, Pierroberto Folgiero, said.
“This important result represents another significant milestone of our Gas Monetization strategy, enabling us to be geared up for Saudi Arabia’s large wave of investments in downstream.”
Milan-based Marie Tecnimont saw its revenue decline by 20 per cent to €2.56 billion ($3.06bn) as the pandemic had "significant negative impacts on operations and the supply chain in every single country", the company said when announcing its annual results last month.
However, it added that the start of vaccination campaigns and the measures taken by institutions to support a recovery is leading to a strengthening of confidence.
Contract awards in Saudi Arabia fell by around 60 per cent last year to 79.5 billion riyals ($21.2bn), the US-Saudi Business Council said last week.
However, it argued that a recovery is on the cards for the year ahead with the Public Investment Fund committing $40bn annually to developing the kingdom's domestic economy over the next five years.
The fund is already backing a number of Saudi Arabia's mega-projects, including Neom, the Red Sea Development project and the redevelopment of Al Ula.
It is also investing in the kingdom's property market, launching the Roshn company in August last year to develop urban communities across the kingdom.