Idea Soda Ash And Calcium Chloride Company (“ISACC”) has appointed NCB Capital as Financial Advisor to provide financial advisory services for the establishment and incorporating of the Jubail Inorganic Chemicals Industries Company (“ICHEM”) in Jubail-II Industrial City.
The agreement, which was signed by Eng. Abdulaziz Yahya Al-Muaiyyad, Managing Director and CEO of ISACC, and Mr. Hicham Hatoum at NCB Capital, follows signing with the other consultants including Jacobs Engineering, who will be the main technical consultant overlooking the development of the production facility in Jubail.
“We are very pleased to be acting as Financial Advisor for the ICHEM project since we share with ISACC a commitment to supporting the development of Saudi Arabia’s non-oil economy for the long term benefit of the kingdom’s future generations,” said Hicham Hatoum. “In this project, ICHEM and us will be joining hands with top level consultants and we will contribute our unrivalled expertise as leaders in corporate finance, providing advice and guidance for the entire project and incorporation of ICHEM”
Speaking on behalf of ISACC, Eng. Al-Muaiyyad said: “ICHEM is one of the most important strategic projects in Saudi Arabia’s efforts to diversify its sources of revenue and reduce reliance on oil exports. As such, we have selected NCB Capital as Financial Advisor in recognition of its outstanding track record as key contributor to the kingdom’s economic development and its renowned expertise and understanding of the Saudi business and capital markets environment.”
To be built at a cost of at least SR1.1 billion, the facility will be the first in the Kingdom and the GCC to produce Soda Ash (Sodium Carbonate) and Calcium Chloride. The factory will have a total capacity of up to eight hundred thousand tons a year with all basic materials secured from mines within KSA. ICHEM will provide the Kingdom’s requirements for Soda Ash and Calcium Chloride, used in oil and gas drilling operations and the manufacturing of glass and detergents, which are currently being imported from outside sources.
The Jubail Inorganic Chemicals Industries Company is a joint stock company (under formation) with a paid-up capital of SR 650 million. The company has already completed its feasibility and market studies, selected the technology and signed the necessary agreements to supply all of the raw materials and is now fully prepared and ready to commence the implementation plan of the project.
NCB Capital provides a full spectrum of corporate finance services to its corporate clients, including advisory in debt and equity capital markets, mergers & acquisitions, real estate development and real estate funds. With a team of world class professionals, NCB Capital is well positioned to gauge the market from a unique viewpoint and is the winner of numerous awards. In 2011, NCB Capital won a total of 17 awards including Best Fund Manager by Euromoney, and Best Equity House in Saudi Arabia by EMEA Finance.
NCB Capital is the leading Saudi Arabian wealth advisor and the kingdom’s largest asset manager with over one million clients and SR 44billion (US$ 11.7 billion) assets under management
ICHEM has strong support from the Ministry of Petroleum and Mineral Resources, Saudi Aramco, and the Royal Commission for Jubail and Yanbu. Saudi Aramco has allocated the necessary gas and fuel for the facility, while the Royal Commission has allocated a 510,000 square meters plot of land for the factory at Jubail-II Industrial City.