JYIC signs deal with Saudi's SABIC, Vopak for 20% Chemtank stake

The deal will help achieve the goals of the National Industrial Development and Logistics Program, a key part of Saudi Vision 2030

  
A man walks past the headquarters of Saudi Basic Industries Corp in Riyadh. Image used for illustrative purpose.

A man walks past the headquarters of Saudi Basic Industries Corp in Riyadh. Image used for illustrative purpose.

REUTERS/FAISAL NASSER
 

JEDDAH: SABIC and Vopak Holding Terminals BV have signed an agreement with the Jubail and Yanbu Industrial Cities Company (JYIC), owned by the Royal Commission for Jubail and Yanbu (RCJY).

Under the agreement, JYIC will become a 20 percent stake partner in Jubail Chemical Storage and Services Company (Chemtank).

The agreement aims to strengthen strategic integration among the three parties to scale up collaboration between local and international organizations. The deal will help achieve the goals of the National Industrial Development and Logistics Program, a key part of Saudi Vision 2030.

Abdullah Al-Saadan, president of the Royal Commission for Jubail and Yanbu, said that JYIC enables the commission to make optimal use of its assets and achieve sustainability and efficiency.

“It invests in the development of the industrial investor logistical services sector, which plays an active logistical role in serving industries, especially petrochemicals. This will help create an attractive environment and enhance the capabilities of the business sector,” he said.

Yousef Al-Benyan, vice-chairman and CEO of SABIC, said the agreement builds on the historical partnership between SABIC and RCJY.

“It is an extension of our continuous coordination in support of the industrial sector in the Kingdom to create an appropriate environment to lay the foundation for future investment,” he said.

Al-Benyan praised the contribution of Vopak as a global player in the field.

Eelco Hoekstra, CEO of Royal Vopak, said: “The entry of JYIC cements a partnership in which the Royal Commission, SABIC and Vopak have jointly collaborated over the past 20 years to create a world-class supply chain infrastructure in Jubail and Yanbu. This sets a great platform to deliver further growth and efficiency in the Kingdom.”

SABIC is a global diversified chemical company headquartered in Riyadh. The company manufactures on a global scale in the Americas, Europe, the Middle East and Asia Pacific, producing different kinds of products including chemicals, commodities, high-performance plastics, agri-nutrients and metals.

The company supports customers by identifying and developing opportunities in key end-use applications such as construction, medical devices, packaging, agri-nutrients, electronics, transportation and clean energy. Production in 2019 measured 72.6 million metric tons.

SABIC has more than 33,000 employees worldwide and operates in about 50 countries. Fostering innovation and a spirit of ingenuity, SABIC has 12,540 global patent filings and has significant research resources, with innovation hubs in five key regions — the US, Europe, the Middle East, South Asia and North Asia.

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