Saudi Chemical unit begins works on SAR 1 bln military products manufacturing plant

08/03/2020 Argaam

 

Saudi Chemical Holding Co. announced the beginning of construction works for an explosives and military products manufacturing facility with a total investment of SAR 1 billion over the next 5 years, it said in a bourse statement today.

 

The facility will be wholly-owned by its subsidiary, Saudi Chemical Company Ltd., and financed through credit facilities and loans from Industrial Development Fund, commercial banks as well as own resources. 

 

The project received all regulatory approvals and is expected to commence operation and production in the first half of 2021, positively impacting the company’s financials.

 

The company will disclose any material developments in due course, the statement added.

 

According to data compiled by Argaam, Saudi Chemical Holding transferred on Jan. 1, 2020, the explosives manufacturing business to its subsidiary, Saudi Chemicals Co. Ltd., with the aim of reducing the risks the sector posed to the joint stock company.

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