SAMAPCO signs $176m loan deal to fund EDC, caustic soda project
Aamir Ashraf
19-Dec-2013
KARACHI
(ICIS)–Saudi Arabia’s Sahara & Ma’aden Petrochemicals Co
(SAMAPCO) has secured a 660m Saudi Riyal (SR) ($176m) loan
from the Public Investment Fund (PIF) to
finance its ethylene dichloride (EDC) and caustic soda
project, the company said on Thursday.
“SAMAPCO has signed today financing agreement to finance its
EDC and caustic soda project. The agreement totaling $176m
(SR660m) has been signed with the PIF,” the companies, Sahara
Petrochemicals and Saudi Arabian Mining Co (Ma’aden), said in
separate statements issued to Saudi stock exchange.
“The PIF loan is for a period of 14 years with one year as
grace period and with semiannual repayments commencing on
December 31, 2014.”
SAMAPCO is a 50:50 joint venture between Sahara
Petrochemicals and Saudi Ma’aden.
The plant, which began trial runs in August, is designed to
produce 250,000 tonnes/year of concentrated caustic soda and
300,000 tonnes/year of EDC.
Trial production is expected to continue for 4-6 months,
including the necessary performance testing. The plant uses
technology from Germany-based engineering firm Uhde.
Caustic soda is an essential feedstock for the refining of
bauxite to alumina. It is produced from the electrolysis of
brine, along with chlorine.
($1 = SR3.75)
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