BCI in final stages of talks with AECI

One of BCI factories

Basic Chemical Industries Co. (BCI) said it is currently concluding negotiations on the final contracts and agreements with South African AECI Ltd. in accordance with the memorandum of understanding (MoU) that the two parties had previously signed.

In a statement to Tadawul, the company said the talks cover the implementation mechanism of the planned joint venture and its operational plan, paving the way for a final agreement that would enable the start of operations and commercial product launches in the coming period.

BCI said the MoU automatically renews for consecutive three-month periods for up to two years from the signing date and remains in effect as both parties finalize contractual negotiations to reach an agreement that maximizes mutual and local market benefits.

The company confirmed that the project is moving forward according to schedule and in a constructive manner, demonstrating both sides' dedication to accomplishing the goals set forth and boosting the project's success and sustainability.

BCI added that it has completed identifying and classifying the target chemical products for localization, including water treatment and mining materials, as well as several specialized chemical additives vital to the local market.

As soon as a final agreement is reached and signed, the company will make an announcement. It will also reveal any significant developments or financial effects when they occur.

BCI signed an MoU on May 7, with Johannesburg-listed AECI Ltd. to establish a strategic partnership aimed at localizing the production of various chemicals, including flocculants, coagulants, flotation agents, coatings, and additives used in oil, mining, and industrial wastewater treatment processes, according to Argaam’s data.

Manufacturing facilities will be established in Jubail Industrial City next to BCI’s chlor-alkali plant to utilize some of its outputs as production inputs, under an MoU initially valid for six months from the signing date and renewable by mutual agreement.