South Korea's STX Heavy Industries concluded a deal with Iraq for a petrochemical plant in the southern city of Basra, according to Aswat al-Iraq.
A Basra official said.“The delegation discussed with the governor the mechanism to implement a memorandum of understanding the company signed with the industry ministry to rehabilitate the petrochemical complex in Basra.”
The deal is to construct a $3 billion petrochemical complex to be run by Iraq’s State Company for Petrochemical Industries. It will produce plastics such as propylene, polyethylene and PVC. It will also produce ethylene, which is a material used to make plastics. Production is expected to begin in 2014.
STX Heavy Industries is already contracted to build a $6.2bn steel mill complex and a power station.
(Source: Aswat al-Iraq)