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Sahara Petrochemicals Co. is studying an earlier plan for a potential merger with Saudi International Petrochemical Co. (Sipchem), Saleh Bahamdan, Sahara’s chief executive officer told Argaam.
The merger aims to improve performance and will result in a diversified business portfolio. However, both companies should maintain their existing agreements with clients and ensure their validity, he added.
In December 2013, Sipchem and Sahara Petrochemicals signed a non-binding memorandum of understanding to start talks for a potential merger, Argaam earlier reported. Negotiations, however, stalled in 2014 as they struggled to find an amicable structure for both sides.
Elsewhere, commenting on the company’s own operations, Bahamdan said that Sahara is set to boost production in some of its plants and study investment opportunities in the manufacturing industries field.
Sahara is also seeking to cut production costs and start greenfield projects either individually or in partnerships, provided that the new products would help reduce imports.
Bahamdan added that new projects will be revealed in 2018 after finalizing regulatory approvals.
He also said that competition among petrochemicals producers is necessary, and denied that Sahara was involved in dumping strategies that lead to price wars.
“We are governed by global prices,” Bahamdan said. “Some of the most important issues for the company include products and their quality, follow-up services, and improving performance at our factories.”
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