Nama Chemicals’ unit terminates wastewater treatment contracts

Nama Chemicals Co.  said its subsidiary, Jubail Chemical Industries Co. (JANA), terminated, on Feb. 4, contracts with a consortium comprising Green Dimension Co. and Confident Engineering International Co.

These contracts pertain to the treatment of wastewater from chloride and epoxy resin plants, the company said in a statement to Tadawul.

The contractors were notified of the termination of both contracts, in accordance with the terms of the signed agreements on Feb. 28, 2024, after a serious breach of contractual obligations was found. No corrective actions were taken despite being granted the statutory deadline to address the shortcomings.

The company pointed out that it retains all of its legal and financial rights to claim compensation for damages resulting from the breach of these contracts and will take all necessary legal actions to safeguard its rights.

The delay from the previously announced date was due to the failure of the consortium to implement the contracts for treating wastewater from chloride and epoxy resin plants, the statement highlighted.

The costs will be determined later, the statement said, adding that Nama Chemicals will announce any relevant developments in due course.

In December 2022, JANA signed contracts worth SAR 56.54 million with the consortium for the treatment of the wastewater’s chloride and epoxy resin plants, according to Argaam data.

At that time, Nama Chemicals said the project cost is estimated at SAR 63 million, including infrastructure and related civil works, indicating that it will be self-financed.

In February 2024, the chemicals producer announced delaying the implementation of wastewater treatment projects from the chloride and epoxy resin plant to secure the necessary financing, adding that the total cost of the project was estimated at SAR 71.24 million.

The project implementation was expected to start on March 10, 2024, and was slated to end on Aug. 10, 2025. The trial production was planned to run for two months afterwards.

The project involves the establishment of wastewater treatment units for the chloride plant using ultraviolet oxidation technology to remove suspended organic materials from the water, as well as the epoxy resin plant through various other techniques. The aim is to help cut operational expenditure (OpEx) and improve production efficiency.