Basic Chemical Industries reaches deal on new land plots
Basic Chemical Industries Co. (BCI) reached on Tuesday a final agreement with the Royal Commission for Jubail and Yanbu (RCJY) on allocating 200,000 square meters (sqm) of land for the company’s future projects in Jubail Industrial City.
BCI will use some of the land to set up a chlorine derivatives project at an estimated cost of SAR 520 million, while adding that it will be financed from operating cash flows, commercial loans, and another loan from the Saudi Industrial Development Fund (SIDF).
The plant’s first phase will operate with a capacity of 70,000 tons, the company said in a statement to the Saudi bourse.
BCI said that the project is set to reflect positively on the company’s financial results, cash flows, and revenue.
In January 2015, BCI signed a one-year memorandum of understanding with Ibrahim A. Juffali & Brothers Co. to establish the equally-owned chlorines project. But, the MoU was terminated last May, Argaam earlier reported.
The chemicals producer said it will update the related feasibility studies and contact qualified firms to complete construction on the project by early 2017.
BCI added that dates for starting trial and commercial operations, as well as expected financial impact, will be announced later on.