FINANCIAL NEWS

Saudi Sipchem inks USD43.92m loan agreement with SIDF

06 May 2012

(MENAFN) Sipchem Chemicals Company’s president of operations, Abdullah S. Al-Saadoon, announced that the company inked a USD43.92 million loan facility deal with Saudi Industrial Development Fund (SIDF), reported Arab News.

Al-Saadoon added that the loan will be used to finance the establishment of ethyl acetate and butyl acetate plant (EA/BA) in Jubail Industrial City.

He also said that the total cost of the project, which will have an annual production capacity of 100,000 tons, is estimated to reach USD93.29 million.

Moreover, the project is forecasted to supply domestic and international markets with ethyl acetate and butyl acetate, which are used as a solvent in inks, industrial liquids and pallets used in paints, etc.

It is worth noting that the project, which is part of Sipchem’s Phase III expansion program, is considered to be the first of its kind in the region.

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