Saudi Chemical signs MoU with Hellmann Worldwide to set up logistics JV

Logo of Saudi Chemical

Saudi Chemical Co., through its pharmaceutical subsidiaries, represented by Saudi International Trading Co. Ltd. (SITCO Pharma), AJA Pharmaceutical Industries Ltd. (AJA Pharma), and Chemical Commercial Investment Co. Ltd. (CCCI), signed, on March 22, 2021, an exclusive memorandum of understanding (MoU) with Hellmann Worldwide Logistics to form a joint venture (JV) for logistic services.

The company said in a bourse statement that the JV, which is the first-of-its-kind in the regional healthcare sector, aims to provide transportation, loading, unloading, warehousing, and distribution services as per the highest standards of quality, safety, and security.

The MoU will be effective for 90 days from the signing date.

The relevant financial impact cannot be determined at this stage, the statement added, noting that the company will announce the latest developments in due course.

Commenting on the MoU, Saudi Chemical Group CEO Thamer Almuhaid said that this strategic partnership will be a reliable advanced logistic platform and an effective partner to improve the quality of logistic infrastructure in Saudi Arabia and diversify the investment opportunities and economic activities.

He added that the MoU is compatible with the company's transformation program, announced on June 23, 2020, and consistent with the goals of the National Transformation Program and Vision 2030 to strengthen the Kingdom's logistic position as a hub connecting three continents.