Sadara inks deals to sell, lease back packaging center assets

Sadara Chemical Company signed on Tuesday a number of agreements with Al Fozan Group to sell and lease back the Sadara Solids and Liquids Handling Center, also known as the Packaging Center, at the company’s chemical complex in Jubail.

The deals were signed with Intercontinental Company for Technical Support Services Limited (ICTSS), a Saudi company owned by Al Fozan and Madar Al-Aseel Co. ltd, according to a company statement.

Under the agreements, the Packaging Center assets will be sold and transferred to ICTSS, and then leased back to Sadara.

The value of the deal was not disclosed.

Financial impact of the transaction is expected to show in Q1 2018, as the asset was sold at its book value, the statement said.

The Packaging Center is Sadara’s primary logistics facility for its Jubail chemical complex, covering solids and liquids handling.

Its activities include packaging, warehousing, storage, drumming, ISO container loading and unloading, container stuffing, truck dispatch, and a container marshaling yard for inbound and outbound products and certain raw materials.