SAFCO delays launch of SAR 2 bln urea plant

Saudi Arabian Fertilizer Co. (SAFCO) said in a bourse filing on Thursday that it has delayed pilot operations at SAFCO-5, its SAR 2 billion urea fertilizer plant, to mid-May. The delay is not projected to weigh on the project's cost.

Financial impact will be recorded after commercial operations, the company added​.

SAFCO said inspections and maintenance will be also shelved to first quarter of 2016 to ensure machinery is safe and ready for operations ​before the company’s warranties end.

Last December, SAFCO said that commercial urea production at the 1.1 million tpa urea fertilizer plant was set to start start in three months, according to data compiled by Argaam.

In 2011, the company awarded the Engineering, Procurement and Construction (EPC) contract of SAFCO- 5 to Italy's Saipem. Construction on the project was set to be completed in 26 months, and commercial production by the third quarter of last year.

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