Saudi Chemical inks MoU to set up ammonium nitrate, nitric acid facility in Ras Al Khair

Logo of Saudi Chemical Co. Holding (SCCH)

Saudi Chemical Co. Holding (SCCH), through its subsidiary Saudi Chemical Co. Ltd. (SCCL), signed a non-binding memorandum of understanding (MoU) with Dyno Nobel for a facility to produce ammonium nitrate and nitric acid in Ras Al Khair.  

In a statement to Tadawul, the company said that the MoU has a duration of six months, during which the preliminary studies and the financial model of the project will be re-verified. The preliminary designs will be made by one of the specialized engineering companies to make the final assessment of the feasibility of the project. 

This project is the first of its kind in the region, which will contribute to supporting vital sectors and strategic projects linked to the Kingdom’s Vision 2030 through localizing the production of raw materials necessary for the manufacturing of civil and military explosives to develop defense and mining industries solutions in Saudi Arabia. 

The financial impact of the MoU will be determined later, the statement added. 

Commenting on the MoU, Group CEO and Managing Director Thamer Al-Muhid, said the company is confident that this collaboration will enhance innovation, create value, develop, and localize the Kingdom's industrial landscape. 

In February 2023, SCCL, in partnership with a local company, received a gas allocation letter from the Ministry of Energy to establish a facility for the production of nitric acid and ammonium nitrate, according to data available with Argaam. 

The facility’s annual production capacity for nitric acid will be 440,000 tons, and for ammonium nitrate will be 300,000 tons.