Saudi Chemical Co. Holding (SCCH) subsidiary Saudi Chemical Company Limited (SCCL) has signed a non-binding memorandum of understanding (MoU) with Dyno Nobel for establishing a production facility to produce ammonium nitrate and nitric acid in Ras Al Khair. 

The project’s preliminary studies and financial model will be re-verified during the six-month duration under the MoU, the company said in a statement to the Saudi stock exchange on Sunday.

A specialised engineering company will create the preliminary designs to make the final assessment of the project’s feasibility.

SCCL received a gas allocation letter from the Ministry of Energy to establish a facility for producing nitric acid and ammonium nitrate in February last year.

The annual production for nitric acid will be 440,000 tonnes, while ammonium nitrate output will stand at 300,000 tonnes. 

(Writing by D Madhura; Editing by Anoop Menon)


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