One of Saudi Arabia’s prominent petrochemical companies is due to complete by year’s end the first plant of a backward integration initiative aimed at boosting production and reducing costs in two subsidiaries.

Nama Chemicals’ $225-million Hassad project incorporates facilities to produce chemicals required for production at two subsidiaries it owns, namely Arabian Alkaline Company, better known as Soda, and Al Jubail Chemcal Industries (Jana).
The Hassad facilities will produce 30,000 tonnes per year (tpy) of epichlorohydrin, 50,000 tpy of caustic soda and 45,000 tpy of calcium chloride.
The epichlorohydrin plant, first of the Hassad project facilities, will be completed later this year. The chemical will be used in the manufacture of epoxy resins at Jana. The caustic soda will be used as feedstock by Soda, while the calcium chloride will be crystallised into granules and sold mainly in the Gulf Co-operation Council (GCC) states.
Foster Wheeler Ltd’s UK subsidiary Foster Wheeler Energy Limited was awarded the project engineering services (PES) contract. The company’s role as PES contractor covers the co-ordination of the engineering, procurement and construction phases of the project.
Nama recently signed a loan agreement for $80 million with four creditors to help finance the Hassad project.
Production from the Hassad facilities will come under the Hassad Petrochemical Company which is being established by Nama Chemicals and other parties.
Jana recently recently raised its epoxy resins capacity to 60,000 tpy from 45,000 tpy.  It produces various categories of epoxy reins including basic liquid resins, solid resins and solution resins under the technical licence of Huntsman Advanced Materials, USA. Jana, which began commercial production in 2000, is described as the first producer of epoxy resins in the Middle East and considered a dominant supplier in the region.
Resins enjoy good demand because they have applications in paints and coatings, civil engineering and composites. Jana’s resins are marketed under two brand names, one of which is the world-famous Araldite, which has been around for more than 60 years. The other brand, Razeen, is Jana’s own creation and carries a registered trade mark. The company says Razeen products have been well received by customers and that Razeen matches the quality of Araldite and is an absolute ‘lookalike.’
Under an offtake agreement, Huntsman buys some of Jana’s output for use in its own manufacturing processes or for reselling.
Nama’s other important subsidiary Soda was developed in 1992 with technology from Bertrams of Switzerland. The company produces high-quality caustic soda prills as well as solids from caustic soda lye.
Soda’s basic raw material, caustic soda lye, is obtained from Sabic afiliate Sadaf and the material is supplied through a dedicated pipeline that runs from Sadaf’s facilities to Soda’s storage area.
Caustic soda is used in chemical production, petroleum and natural gas processing, the textile finishing process, cleaning products, food processing, beverages, pharmaceuticals production and water and sewage treatment. They are sold within Saudi Arabia and in the GCC states as well as having some global target markets.
Soda is in the process of doubling its annual production capacity to 100,000 tonnes, a development that is likely to be completed early next year. The expansion is the first since the company was established. Nama says that currently the plant is working above its designed name plate capacity of 50,000 tpy. 
The production facilities of Jana and Soda are located in Jubail Industrial City and constructed on land leased from the Royal Commission of Jubail and Yanbu. The Hassad complex is being built very close to the Jana plant.
Aside from its affiliates Jana and Soda, Nama has invested in several other petrochemical companies including Sabic companies Ibn Rushd and Yansab. It has a 9.11 per cent share in National Chemical Industries Corporation (Nacic), Bahrain. Nacic, established in 1993, produces sodium sulfite and sodium metabisulphite at a total annual capacity of 18,000 tpy.
Nama’s net profits in this year’s first half were SR17.4 million ($4.6 million), a 141 per cent increase over the previous year. Net profits for the whole of 2006 were SR21.9 million against SR29.7 million in the previous year. Sales in 2006 were SR395.2 million against SR292.6 million in the year before.
Nama, founded in 1992, was earlier known as Arabian Industrial Development Company. In 2005 it changed its name to Nama Chemicals Company.
“We are dedicated to growth by developing, executing and operating strategic chemical and petrochemical projects through our own resources or in collaboration with competent providers thereby adding value to our customers and shareholders,” a company spokesman says. Nama aims to be a leading petrochemical company recognised for profitable investments and the ability to develop and maintain business alliances.
Chairman Saud Al Gosaibi says the company has so far lived up to its vision. “Nama has managed to introduce a new company to the Saudi economy every five years,” he observes.
“Nama continues to evaluate and discuss with its partners its plans to take advantage of Saudi Arabia’s abundant natural resources, strategic geographical locations and dynamic growth potential as well as to utilise its internal organisational strength for mutual benefits and growth.”