Zamil Group founds new petrochemical company

Mar 02, 2004 01:00 AM

Zamil Group has taken the necessary steps to form the Sahara Petrochemical Company which is capitalised at 1.5 bn Saudi Riyals ($ 400 mm).
The private placement of shares for the founders invited by the Al Zamil Group was greatly over-subscribed; shares allotted to them amounted to 1 bn Saudi Riyals.

The remaining share of the capital amounting to 500 mm Saudi Riyals will be offered to the public next month in a public offering managed by The Consulting Centre for Finance & Investment (CCFI) in Riyadh.
The Chairman of the Al Zamil Group, Dr Abdul Rahman Al Zamil and the President of CCFI, Dr Abdul Aziz Al Dakhel on February 24, 2004 signed an agreement with Riyadh Bank, National Commercial Bank and SAMBA authorising the banks to receive the public request for shares.

Sahara Petrochemical will invest in two petrochemical projects in Jubail. The first project will be a PDH 1 polypropylene project in partnership with Basell. The second project will be an ethylene complex including low density and high-density polyethylene production in partnership with international and local companies.
Dr Abdul Rahman Al Zamil said: "Saudi Arabia is an excellent location for investment in petrochemicals, due to the plentiful availability of natural resources such as natural gas. The country's strategic location at the juncture between east and west, and its ability to serve both Africa and the Gulf also makes it an ideal location for the production of these chemicals."

Source: Pipeline Magazine