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Sahara Petrochemicals Company announces that one of TSOCs affiliates, Saudi Acrylic Monomers Company Limited (SAMCO), signed today Sunday 5th February, 2012 a financing agreement with Saudi Industrial Development Fund (SIDF) with a value of SR 600 (six hundred) million.
This financing amount shall be repaid after three and a half years from the date of signing the agreement on a half-yearly installments basis for ten years with an ascending value ranging between SR 35 to 55 million according to the project future revenues.
The target of this agreement is to finance the construction activities of a plant producing 145KTPA of raw acrylic acid, 145KTPA of acrylic butyl and 85KTPA of pure acrylic acid.
This plant shall supply the Super Absorbent Polymers (SAP) project , which was declared earlier on 20 August 2011 , with the necessary feedstock. The plants ownership structure shall be 75% for Saudi Acrylic Acid Company (SAAC) and 25% for DOW Chemicals.
It is worth mentioning that Sahara Petrochemicals announced on 16th October 2010G the awarding of early works of EPC activities contracts of the Acrylic Acid and its derivatives project which to be built in Tasnee Petrochemical Complex in Jubail Industrial City to a consortium consisting of Linde Company of Germany and Samsung of Korea.
The total cost of the Saudi Acrylic Monomers Company (SAMCO) projects amounts at approximately SR 3800 Million.
The remaining financing amount shall be provided through the partners and commercial banks with which the commitments agreements were declared on 20th December 2011. The project shall avail 225 direct job opportunities which can be increased with the gradual expansion of the project.
The plant shall be in operation, God Willing, during the 1st quarter of 2013 G. Sahara Petrochemicals Company owns 43.15 % of SAAC, 32.36% of SAMCO and 32.55% of TSOC.
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