Six Saudi industrial projects get $5.6bn go ahead
Officials ink deals for plant construction in Jubail Industrial City
Six industrial mega projects worth a total of $5.6bn have been approved for construction in Jubail by the Royal Commission for Jubail and Yanbu.
The deals were signed by Commission Chairman Prince Saud bin Abdullah Thunayyan, at Jubail Industrial City on Sunday, who said the projects are expected to generate huge employment opportunities for the region.
The largest deal is for the construction of a $3.2bn facility to produce ethylene propylene diene monomer, rubber and black carbon that are used in automobile industry. The deal was signed with the Al Jubail Petrochemical Company (Kemya), a joint venture between Saudi Basic Industries Corp. and Exxon Mobil Corp.
The new factory will cover 32.7 hectares and supply automotive markets globally.
A second project, worth $800m, was awarded to Jubail Chemical Industries Company (JANA) to set up an industrial complex for the expansion of existing industries and adding new products with an annual production capacity of 600,000 tons. These included products used in a number of downstream industries such as painting, leather and several chemical industries.
Saudi International Petrochemical Co. (SIPCHEM) was allocated $750m for a factory that will produce ethylene vinyl acetate and low-density polyethylene. The plant will produce around 200,000 tonnes of the products annually once up and running.
Another deal will see National Industrialization Co., or Tasnee, develop a $373m plant that will produce 80,000 tonnes of super-absorbent polymers annually.
Saudi Arabian Fertilizer Co. (SAFCO) will expand its urea production operations to 3.67m tonnes annually thanks to a $533m deal. Urea is a key component in fertilisers and melamine.
The new contracts are part of a massive industrial push in the region. Over the past year, the two industrial cities had received licences for new projects totalling $39bn, while current investments in the regions stand at $180bn.