Riyadh – Mubasher: Saudi Kayan Petrochemical Company on Thursday announced signing a two-year memorandum of understanding (MoU) with Clariant International AG to evaluate the feasibility study of establishing a joint venture (JV) over the coming period.
The JV will own a plant at Jubail Industrial City to manufacture alkoxylates, with a production capacity of 120,000 metric tonnes via using Kayan’s materials, according to a statement to the Saudi Stock Exchange (Tadawul).
The statement further noted that deal’s period will end on 19 December 2020.
“The proposed Memorandum of Understanding is considered a memorandum with a related party as it entered into with Clariant International AG, an affiliate of Clariant AG, which Saudi Basic Industries Corporation (SABIC) holds 24.99%,” the statement noted.
It is worth noting that SABIC owns a 35% stake in Kayan.
Kayan Petrochemical last reported a 23.85% year-on-year profit growth for the third quarter of 2018, logging SAR 471.9 million, compared to SAR 381.03 million.
During the first nine months of 2018, Saudi Kayan’s profit hiked 104% to SAR 1.8 billion, from SAR 888.5 million in the same period of the prior year.
By 10:37 am Saudi time, Kayan’s stock shed 0.57%, reaching SAR 13.84.
