Sipchem: IGC’s deal with Sabic to have SAR 40 mln financial impact

Sipchem said the deal signed by its subsidiary, the International Gases Company (IGC) to supply Sabic with carbon monoxide, will have a financial impact of SAR 40 million.

The financial impact will be reflected as of 2017, a filing to Tadawul said.

IGC is 72 percent owned by Sipchem and operates a carbon monoxide plant which produces 345,000 tonnes per annum.

Saudi Methacrylates Company (SAMAC) uses carbon monoxide as feedstock for producing methyl methacrylate.

When SAMAC’s plant is operational, IGC can increase its carbon monoxide production and sales by 23 percent, a filing to Tadawul said.