Sadara Signs Agreements to Sell and Lease Back Packaging Center Assets
Sadara Chemical Company (Sadara) has today concluded negotiations with Al Fozan, a leading Saudi conglomerate, regarding a set of agreements relating to the sale and lease back of the Sadara Solids and Liquids Handling Center, also known as the Packaging Center, located in Sadara’s Jubail chemical complex. These agreements were signed with Intercontinental Company for Technical Support Services Limited (ICTSS), which is wholly owned by Al Fozan Holding Company and Madar Al-Aseel Company Limited.
The agreements govern the sale and transfer of Packaging Center assets to ICTSS and the lease back of these facilities to Sadara.
The Packaging Center is Sadara’s primary logistics facility for its Jubail chemical complex, covering solids and liquids handling, and includes: packaging, warehousing, storage, drumming, ISO container loading and unloading, container stuffing, truck dispatch and a container marshaling yard for inbound and outbound products and certain raw materials.
“The transaction with Al Fozan is sale and lease back transaction which will free up some capital for Sadara, and will not affect the operations of Sadara or the Packaging Center itself,” said Dr Faisal Al-Faqeer, Sadara CEO.
“This deal represents a step towards realizing the original design of Sadara, which will see a third-party partner owning the Packaging Center, allowing us to focus our efforts on the manufacturing side of the business - that of producing our wide range of diversified chemicals and plastics to serve the local and global market’s needs,” he concluded.
The Packaging Center assets are located on the Sadara site, and ICTSS will sub-lease the land from Sadara and lease back the Packaging Center facilities.
Established in October 2011, Sadara Chemical Company is a joint venture developed by the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow). It is an unprecedented undertaking – the largest chemical complex ever built in the world in a single phase, with 26 integrated world-scale manufacturing plants, over 3 million metric tons of capacity per year, and a total investment of about US$20 billion.