Saudi Arabia: Advanced Petrochemical has agreed a deal to build two new plastics plants in Jubail at a total cost of $485 million.

The two plants will have the capacity to manufacture more than 800,000 tons of polypropylene in Jubail Industrial City and take 37 months to complete, the company said in a stock exchange filing on Wednesday.

Engineering, procurement and construction contracts have been signed with Tecnimont to build the plants.

Saudi Arabia, already one of the world's biggest suppliers of petrochemicals, has stepped up spending in the sector as it adds investments in higher value industries and reduces its overall reliance on crude oil sales.

Global polypropylene consumption is on the rise led by soaring demand from the packaging sector that has been supported by the increase in online shopping during the pandemic.

Demand for the material is also on the rise in the auto sector as more metal parts are replaced in the quest for lighter electric vehicles.