<article><p class="lead">Saudi Arabia-based petrochemical producer Sipchem plans to mothball its Jubail-based affiliate Gulf Advanced Cable Insulation (GACI) from 1 July.</p><p>The GACI plant is responsible for producing cross linkable low-density polyethylene (LDPE) and semi-conductive LDPE, which are used in electrical cables. GACI uses feedstock produced by Sipchem's Jubail-based affiliate International Polymers' 200,000 t/yr LDPE and 200,000 t/yr ethylene vinyl acetate plants. </p><p>GACI started operations in June 2015 as a 50:50 joint venture between Sipchem and South Korean petrochemical producer Hanwha Solutions. </p><p>This decision is part of Sipchem's strategy of "improving profitability, efficiency of operations, ensuring best levels of liquidity, stability and maintaining the integrity of its financial structure," it said. </p><p class="bylines">By Matthew Rajendra</p></article>
