Saudi Chemical approves SAR 75M warehouse project for SITCO Pharma

Saudi Chemical to build SAR 75 mln advanced warehouse for subsidiary Sitco Pharma in Jeddah

Saudi Chemical Co. said its subsidiary, Saudi International Trading Co. Ltd. (SITCO Pharma), started developing a new advanced warehouse in Jeddah at a total cost of SAR 75 million.

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In a statement to Tadawul, the company said the project will be financed through Shariah-compliant bank loans from local lenders.

The board of directors approved the project on Sept. 25. Construction is scheduled to begin in Q4 2025 and is expected to be completed in Q1 2027.

Trial operations are planned to start in Q4 2026 for three months, with commercial operations set to begin in Q1 2027.

The company expects the financial impact of the project to appear in its first-quarter 2027 results.

The new facility will be built on SITCO Pharma-owned land spanning 20,000 square meters (sqm), providing around 14,000 sqm of advanced storage space and 800 sqm of office space.

The warehouse will feature state-of-the-art automation and cooling systems, fully compliant with Saudi Food and Drug Authority (SFDA) regulations, and designed with flexibility for future expansion to meet market growth.

Saudi Chemical said it will announce the contractor or other parties involved at a later stage, noting that there are no related parties to the project.