SABIC establishes new company, integrates all agri-nutrient assets to form SABIC Agri-nutrient Investments

SABIC announced its decision to establish a new company called 'SABIC Agri-nutrient Investments', to consolidate all its equity shares and assets currently held in several companies specialised in the production of various agri-nutrient products.

Yousef Al-Benyan, SABIC vice chairman and CEO.
Yousef Al-Benyan, SABIC vice chairman and CEO.

The decision includes SABIC’s share of assets in Al-Bayroni (Jubail Fertilizer Company) – 50%; Ibn Al-Baytar (National Chemical Fertilizer Company) – 50%; GPIC (Gulf Petrochemical Industrial Company) – 33.33%; MPC (Ma`aden Phosphate Company) – 30% and MWSPC (Ma`aden Wa`ad Al-Shamal Phosphate Company) – 15%.

Additionally, SABIC owns 43% of SAFCO. The different production companies, manufacture a broad range of fertilisers (agri-nutrients), such as urea, phosphate-based and compound fertilisers. SABIC is currently an anchor shareholder in SAFCO, holding 43% of the shares.

Additionally, SABIC has signed a non-binding memorandum of understanding (MoU) with its subsidiary SAFCO (Saudi Arabian Fertilizer Company), to facilitate the integration of the newly formed company – SABIC Agri-nutrient Investments – with SAFCO, subject to regulatory and shareholder approval. The integration process is expected to be completed by the end of 2019.

In its new form, the company will benefit from SABIC's strong reputation in the agri-nutrients sector and will serve as a growth platform strengthening SABIC's ambition to grow its agri-nutirients business into a global leading position.

Yousef Al-Benyan, SABIC vice chairman and CEO, said, “The integration of our agri-nutrient production assets under one umbrella, represents part of SABIC’s diversification strategy and transformation programme to achieve successful and sustainable long-term growth.

“SABIC has a long and strong track record of growing businesses through joint ventures and co-investment in both listed and private companies. Integration of all our fertiliser production assets will allow SABIC and SAFCO to achieve accelerated organic and inorganic growth as well as capture further operational synergies and increase overall production efficiency.”

SABIC agri-nutrients strategic business unit, and its marketing, sales and technology and innovation functions will remain part of SABIC delivering the company’s 2025 strategy through its investment arms in this sector.

For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.

For all the latest refining and petrochemical news from the Middle East countries, follow us on Twitter and LinkedIn, like us on Facebook.

You may also like

Sipchem announces scheduled periodic maintenance turnaround in International Diol Company plant
Sipchem announced the scheduled periodic turnaround maintenance of International Diol Company, an affiliate of Sipchem, which will contribute to enhance the reliability and efficiency of production.
New global alliance commits over $1bn to help end plastic waste in the environment
An alliance of global companies from the plastics and consumer goods value chain launched a new organisation to advance solutions to eliminate plastic waste in the environment, especially in the ocean.
INEOS selects Antwerp as the location for the first cracker to be built in Europe in 20 years
The $3.42bn investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years.
Aramco plans to sell $10bn international bond to support SABIC acquisition
Saudi Aramco is in negotiations to buy 70% of SABIC from the kingdom’s Public Investment Fund, which will cost about $70bn.