Advanced Petrochemical inks ​ off-take ​ agreements

01/02/2015 ِArgaam

Advanced Petrochemical ​Company ​signed on Thursday long-term off-​take agreements with Mitsubishi Corporation of Japan and Domo Investment of Belgium to sell 150,000 metric TPA of Polypropylene (PP) and another 100,000 metric TPA, respectively.


The 10-year agreements will be effective as of January 1, 2019, according to the company’s filing on Tadawul, Saudi Arabia’s bourse.

The Saudi-based company also signed short-term off
​-​take agreements with Mitsubishi Corporation and Domo Chemicals Asia Ltd., subsidiary of Domo Investment Group, to sell 50,000 metric TPA of PP each. The deal, effective Sunday, will last for four years.


The additional Polypropylene will be produced from outsourced Propylene (intermediate product) purchased from a local supplier, the company said.

The agreements will help the company fulfill its long term strategic plans and will also improve profitability, said Khalifa Al-Mulhem, chairman of the company.

The financial impact of these agreements will be recorded over the coming years, as per applied market prices.

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