Saudi’s SAFCO 5 urea plant start up delayed to Q1 2015

24 June 2014 10:57 Source:ICIS News

Urea is widely used as a fertilizerLONDON (ICIS)--Commercial urea production at Saudi Arabian Fertilizer Company's (SAFCO) $500m urea fertilizer plant, SAFCO-5, is being delayed to the first quarter of 2015, the company said in a filing to the Saudi Stock Exchange on Monday.

Commercial production at the 1.1m tonne/year urea plant was to initially start in the third quarter of this year.

The delay is due to construction and mechanical work at the project being behind schedule, SAFCO said.

The average completion rate of the project is about 94% at present and will reach 100% or full completion during the fourth quarter of this year while production trials will take another three months from the date of completion, according to the company.

The SAFCO 5 plant is located 100km (62 miles) north of Dammam, on the eastern coast of Saudi Arabia.

Saudi Arabian Basic Industries Corporation (SABIC) owns 42.99% of SAFCO while private investors hold a 57.01% stake in the company.

By Deepika Thapliyal