Sabic and Vopak Holding Terminals have signed a partnership agreement with Jubail and Yanbu Industrial Cities Co (JYIC) to become a 20 per cent stake partner in Jubail Chemical Storage and Services Company (Chemtank), a joint statement said.
JYIC is owned by the Royal Commission for Jubail and Yanbu (RCJY), an autonomous organisation of the Saudi Arabian Government.
Under the new agreement and subject to obtaining all required regulatory approvals, JYIC will own 20 per cent of Chemtank shares, while Sabic and Vopak Holding Terminals will hold 58 per cent and 22 per cent of the remainder, respectively. Financial details of the transaction were not disclosed.
Chemtank operates a 568,000cbm tank terminal at the King Fahd Industrial Port in Al-Jubail, Saudi Arabia.
The agreement aims to strengthen strategic integration among the three parties to scale up collaboration between local and international organisations. The deal will help achieve the goals of the National Industrial Development and Logistics Program, a key part of Saudi Vision 2030.
Abdullah Al-Saadan, president of the Royal Commission for Jubail and Yanbu, said that JYIC enables the commission to make optimal use of its assets and achieve sustainability and efficiency.
“It invests in the development of the industrial investor logistical services sector, which plays an active logistical role in serving industries, especially petrochemicals. This will help create an attractive environment and enhance the capabilities of the business sector,” he said.
Yousef Al-Benyan, vice-chairman and CEO of Sabic, said the agreement builds on the historical partnership between Sabic and RCJY.
“It is an extension of our continuous coordination in support of the industrial sector in the Kingdom to create an appropriate environment to lay the foundation for future investment,” he said.
Al-Benyan praised the contribution of Vopak as a global player in the field.
Eelco Hoekstra, CEO of Royal Vopak, said: “The entry of JYIC cements a partnership in which the Royal Commission, Sabic and Vopak have jointly collaborated over the past 20 years to create a world-class supply chain infrastructure in Jubail and Yanbu. This sets a great platform to deliver further growth and efficiency in the Kingdom.”
Sabic is a global diversified chemical company headquartered in Riyadh. The company manufactures on a global scale in the Americas, Europe, the Middle East and Asia Pacific, producing different kinds of products including chemicals, commodities, high-performance plastics, agri-nutrients and metals.
Production in 2019 measured 72.6 million metric tonnes.
