Almuneef inks MoU with Turkish firm to explore setting up fertilizer plant

Almuneef said the MoU aims at studying setting up a fertilizer plant with a production capacity from 15,000 tons to 100,000 tons per year

Almuneef Company for Trade, Industry, Agriculture and Contracting signed, on Jan. 21, a preliminary non-binding memorandum of understanding (MoU) with Turkey’s UNİBA TARIM SANAYİ VE TİCARET ANONİM ŞİRKETİ Co., which operates in the industrial sector, to establish a fertilizer factory through a joint venture.

In a statement to Tadawul, the company said the MoU aims to set up a fertilizer plant with a production capacity of nearly 15,000 to 100,000 tons per year.

The types of fertilizers to be produced by the plant will be determined based on the study's outcomes.

The cost of establishing the factory ranges from approximately SAR 22.5 million to SAR 112.5 million, depending on the scenarios being evaluated.

The study period until commercial operation is approximately 18 months, depending on the completion of all phases.

The MoU is valid for 180 days, after which it may be renewed by mutual agreement.

There are no related parties in the deal and there will be no financial impact resulting from the MoU, the company noted.

Any further updates will be announced in due course.