Sipchem CEO says on look-out for growth opportunities

Saudi International Petrochemical Company (Sipchem) is constantly looking for growth opportunities— either through setting up new projects where it can manage feedstock allocations, or through the acquisition of stakes in other companies, Ahmad Al-Ohali, CEO of Sipchem, said.

In an interview with Al-Arabiya TV, Al-Ohali added that his company is not planning to fully own the International Acetyl Company and International Vinyl Acetate Company following the increase of its stake in both companies to 87 percent.

Sipchem said on Wednesday that it acquired 11 percent stakes in each entity from Kuwait's Ikarus Petroleum Industries Company for an estimated SAR 375.8 million as part of its growth and expansion strategy.

Al-Ohali said he thought the value of the deal was “fair.”

The acetyl project is the second contributor to Sipchem’s profits after the methanol project, he added.

Sipchem’s share price rose nearly 2 percent to SAR 31.90 on Wednesday after it announced the acquisition.