BCI signs SAR 19 mln equipment sale contract

One of BCI factories

Basic Chemical Industries Co. (BCI) signed today, July 6, a SAR 19 million sale contract of parts from its chlorine plant No. 3 in the Dammam First Industrial City (the old plant) with International Prossplants and Equipment Corp. (IPPE), according to a statement to Tadawul.

The asset's book value amounts to SAR 2.2 million, the company said, adding that the agreement does not include parts of the plant that will continue to cater to the remaining plants on site, such as control systems, electric power supply and other support systems.

BCI also indicated that the deal will be financed from partial payments until the completion of the dismantling and transfer of the old plant. It clarified that the sale came as chlorine production activities stopped at the Dammam plant and a new factory was established in Jubail.

The deal is set to increase the company's cash flows during the collection periods. The proceeds of the asset sale will be used in management of BCI’s operating capital.