Saudi Arabia’s SABIC announced its decision to establish the SABIC Agri-nutrient Investments company to consolidate all its equity shares and assets currently held in several companies specialized in the production of various agri-nutrient products.
The decision includes SABIC’s share of assets in Al-Bayroni (Jubail Fertilizer Company) – 50 percent; Ibn Al-Baytar (National Chemical Fertilizer Company) – 50 percent; GPIC (Gulf Petrochemical Industrial Company) – 33.33 percent; MPC (Ma’aden Phosphate Company) – 30 percent and MWSPC (Ma’aden Wa’ad Al-Shamal Phosphate Company) – 15 percent.
Additionally, SABIC signed a non-binding Memorandum of Understanding (MoU) with its subsidiary SAFCO (Saudi Arabian Fertilizer Company) to facilitate the integration of SABIC Agri-nutrient Investments with SAFCO.
The integration process is expected to be completed by the end of 2019.
SABIC owns 43 percent of SAFCO.
Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: “The integration of our agri-nutrient production assets under one umbrella, represents part of SABIC’s diversification strategy and transformation program to achieve successful and sustainable long-term growth.”
“SABIC has a long and strong track record of growing businesses through joint ventures and co-investment in both listed and private companies. Integration of all our fertilizer production assets will allow SABIC and SAFCO to achieve accelerated organic and inorganic growth, as well as capture further operational synergies and increase overall production efficiency.”
SABIC Agri-nutrients Strategic Business Unit and its Marketing, sales, and technology and innovation functions will remain part of SABIC, delivering the company’s 2025 strategy through its investment arms in this sector.
