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Sabic signs two industry deals worth $1.5 billion

Sabic signs two industry deals worth $1.5 billion

Sabic, a global leader in diversified chemicals, has signed two agreements worth a total of SR5.6 billion ($1.5 billion) to enable sustainable growth of downstream industries and developing national industry in support of Saudi 2030.

The memorandums of understanding (MoUs) were signed during the 2nd annual Future Investment Initiative conference (FII) held in Riyadh from October 23 to 25.

The MoUs were signed with the German Schmid and the Riwaq Industrial Development to establish state-of-the-art plants in Jubail Industrial City, producing silicon for semiconductors, electronics and solar cells, in additional to the batteries. The SR1.6 billion project will use Sabic materials to localize the technology for the first time in the Kingdom, and will provide 1,000 direct jobs.

Sabic also committed to a SR4 billion project providing part of the raw materials needed under a project agreement with Pan Asia PET. The project will be launched in Jazan Industrial City by the Chinese company.

Yousef Al-Benyan, Sabic vice chairman and CEO, said: “This is part of Sabic’s commitment to localizing knowledge, technology and industry, maximizing local content and attracting foreign investment, under its role to enabling Saudi 2030.”

He was optimistic about the expected economic impact of these projects on the GDP and job creation in the Kingdom.

“Sabic has aligned all its strategies to serve the growth and transformation programs to achieve national development priorities. We are proud to contribute to the success of the Future Investment Initiative, which is an effective hub that affirms the Kingdom’s global standing as an economic powerhouse and a creator of growth opportunities in various fields around the world.” Al-Benyan said.

“Relying on technical and cognitive data, we will achieve economic prosperity based on cooperation and integration with everyone,” he added.

Al-Benyan also stressed that Sabic had contributed to this step through its international partnerships, and that the company will continue to supply these projects with raw materials and logistical support, and facilitate all procedures to ensure the development of technical and operational experiences for all parties in a stimulating investment environment.

For these projects, Sabic will provide coordination, logistical support, materials and products, as well as technical support, under its national initiative “Nusaned”. These efforts will generate new jobs, transfer technology and promote the kingdom’s national economy.

The projects in Jubail will also act as a strategic nucleus for integrated silicon downstream industries that are involved in industrial areas such as transport, energy and defence systems. They will enable support industries that generate large investments and create a large number of high and medium jobs. The implementation program of the two projects includes preparing, qualifying and training Saudi youth of both sexes on these techniques to manage and operate these new plants.

The commitments reinforced the company’s push to enable Saudi Vision 2030 through its long-held expertise in supporting local content through localizing industry and attracting foreign investment to the Kingdom.

Sabic is a strategic partner of FII, hosted under the leadership of HRH Prince Mohammad bin Salman bin Abdulaziz Al-Saud, Crown Prince, Chairman of the Council for Economic and Development Affairs and Chairman of the Public Investment Fund (PIF). The event brings together international business and investment trailblazers to exchange ideas on the future of human development and explore investment opportunities.