JAX Group News
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SAR5.6 BILLION PETROCHEMICAL PROJECT IN YANBU
“Al Eqtisadiah
News” Riyadh, dt: 24-July-2006 |
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Dr. Hashem A. Yamani, Minister of Commerce and Industry, approved licensing a petrochemical project in Industrial Yanbu City for JAX Contracting and Suppliers Company to be named JAX Factory for Aromatics Production. Dr. Khalid S. Al Sulaiman, Deputy Minister for Industrial Affairs declared that the project shall produce a number of petrochemicals such as Baraziline, Benzene, Light Naphtha, Hydrogen, Rafninite, heavy Aromatics, with a total production capacity of 1.604 million tons. Dr. Khalid S. Al Sulaiman, Deputy Minister for Industrial Affairs added that investments of the new project in Yanbu Industrial City are estimated by SAR 5.597 billion and that it will create about 325 jobs. He has also mentioned that, due to its huge investments, this project represents a great industrial addition to Saudi industrial market in addition to providing substances that are deemed to be vital as sub-materials for various industries such as raw materials of paints and plastic factories as well as various chemical factories. This approval comes in the scope of the Saudi government trend towards diversifying investments in non-oil industries and increasing the volume of Saudi GDP. This scope of activities attracted various and diverse investments throughout the previous era in which various petrochemical projects had been either erected or announced whether in direct investment or foreign partnerships. In this respect, Eng. Ali Al Nuaimi, Minister of Petroleum and Mineral Treasury has recently announced that the ministry had approved to allocate a big amount of Ethan, Propan, Butane, and natural gas for erection of two big petrochemical projects in Al Jubail and Yanbu with a preliminary total value of SAR 23 Billion. He declared that the first project shall be established in Al Jubail and shall include a comprehensive integrated complex for petrochemicals participated by one Saudi and three European, American and Japanese companies. A big portion of the total capital shall be launched for IPO without premium as per regulations and procedures to be decided by the Saudi Capital Market Agency (CMA). It had also been agreed with the Saudi company that a big portion of its current projects shares as well as those under construction shall also be launched for IPO. In a previous time, incorporation of a new Saudi petrochemical company whose ownership is distributed among SABIC and KIAN petrochemicals whereas the rest of share shall be left for citizens as declared by Eng, Mohammed Al Madhi, Vice Executive chairman of BOD in SABIC who added that the total capital of the new company shall total up to SAR 12 Billion to be distributed as 35% to SABIC and 20% to KIAN and the rest 45% shall be set for IPO. |
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