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Saudi Basic Industries Corp (SABIC) has announced the merger of two of its manufacturing affiliates – Saudi Petrochemical Company (Sadaf) merging into Arabian Petrochemical Company (Petrokemya), effective Oct.1, 2019.
All assets, rights, liabilities and obligations of Sadaf will be transferred to Petrokemya, the petrochemicals giant said in a statement.
Petrokemya will continue to exist, while Sadaf will cease to exist as a legal entity.
This step comes as part of SABIC’s transformation program, which was initiated three years ago, to enhance efficiency and competitiveness across all its operations.
With the merger, SABIC seeks to create a more efficient platform to optimize assets and utilize the full potential from the synergies between the two companies’ product streams.
It is also expected to create more effective and streamlined operations, maintenance and project execution, the statement said.
The merger is not expected to have immediate material impact on SABIC’s financial position but will improve cost competitiveness in the long term.
Related News
SABIC to merge its two fully-owned subsidiaries |
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