Saudi’s Alwasail Industrial Company has signed a contract with petrochemical major Saudi Basic Industries Corp (SABIC) to buy raw materials for its manufacturing activities and products, including polyethylene pipes and its derivatives, for approximately 300 million Saudi riyals ($79.94 million).

The company will buy nearly 60,000 metric tonnes of raw materials used in more than 90 percent of its products, Alwasail said in a statement to the Saudi stock exchange.

The contract term is one year, starting 1 January until 31 December  2023. 

Last month, Alwasail had approved building a new plant in Jazan's Modon Industrial City at an investment of SAR 5 million, with construction slated to start in the second quarter of 2023.

(Writing by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)