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Petrochemicals giant Saudi Basic Industries Corp (SABIC) signed a letter of intent (LOI) with Saudi Aramco to discuss the development of a downstream industrial and logistics park in Yanbu, the company said in a statement on Monday.
The signing took place on the sideline of the inauguration ceremony of the National Industrial Development & Logistics Program (NIDLP).
The companies previously selected Yanbu as the location for their upcoming crude-oil-to-chemicals complex (COTC), a joint venture between SABIC and Saudi Aramco.
Additionally, SABIC also signed three memoranda of understanding (MoUs), including one with Dussur Company to establish of a distribution platform for SABIC liquid chemical products; the second one with the Global Company for Chemical Industries to support the manufacture of specialized materials for drilling, exploration and oil treatment; and the third with King Abdullah International Center for Medical Research, Health Affairs, Ministry of National Guard, for the development of national medical industry in the field of pharmaceuticals and medical equipment.
“The program is promising and will contribute to enabling the ambitious vision of transforming the Kingdom into a pioneering industrial power and a global logistics platform,” Yousef Al-Benyan, SABIC vice chairman and CEO, said.
“SABIC is a key enabler in achieving the objectives of the Vision 2030 and supporting SMEs,” he added, highlighting the company’s pivotal role in driving manufacturing localization efforts, especially in the downstream sector, as well as developing local suppliers of materials and services.
NIDLP includes more than 330 initiatives in place to achieve more than one-third of the objectives of the Kingdom’s Vision 2030.
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