Saudi Chemical unit completes trial phase, produces first TNT batch

The company said the first TNT batch met approved global military standards

Saudi Chemical Co. Holding said its subsidiary Saudi Chemical Co. Ltd. (SCCL) has completed the trial operation of its TNT production line and produced its first batch, according to a statement to Tadawul.

The company said the output meets global military standards following the completion of all technical and operational testing requirements.

It added that work is underway to prepare and equip production lines ahead of the commercial production phase, noting that these steps are part of the project’s normal progression after trial operations.

No timeline was provided for the start of commercial production, the chemical producer said, adding that there has been no material change in project costs, which remain within the approved budget.

There is currently no material financial impact on the company's results, according to the statement.

The start of commercial production and any related financial impact will be disclosed in due course, in line with Capital Market Authority (CMA) and Tadawul regulations.

Saudi Chemical had announced in March 2020 the start of constructing an explosives and military products manufacturing facility with a total investment of SAR 1 billion over five years.

Construction was completed in June 2022, with the plant fully equipped, including production lines, warehouses, and safety systems.

In May 2023, the company said it had obtained final approvals from relevant authorities for the military industries complex and began trial operations to ensure safety and complete quality control processes in line with approved technical standards.