STOCKHOLM (MarketWatch) -- Aker Kvaerner said Thursday it has been awarded a contract by ShenHua Baotou Coal Chemicals Co., for a new polypropylene (PP) and polyethylene (PE) facility at its coal chemical complex in Baotou, Inner Mongolia, People's Republic of China.

Aker Kvaerner is providing the basic engineering design, technical advisory services, and certain offshore equipment procurement service.
The contract value to Aker Kvaerner was not disclosed.

ShenHua Baotou is part of ShenHua Group Corporation Limited - the biggest coal enterprise group in China.

The project will utilise UNIPOL PP Technology from The Dow Chemical Company and Univation's UNIPOL PE technology - two of the core technologies in the Aker Kvaerner Process portfolio.

Both the new plants will have a capacity of 300,000 metric tons per annum (tpa). The project commences this month, and the PP plant start-up is expected in latter half of 2010.

Aker Kvaerner also provided project management consultancy services for ShenHua Group's Coal Liquification project at Majiata, Inner Mongolia, which will be mechanically completed in the second half of 2007.