Saudi Chemical‘s military products manufacturing project to boost profitability: CEO

The explosives and military products manufacturing facility worth SAR 1 billion will have a positive impact on Saudi Chemical Holding Co.’s profitability and will reduce debts by 2021, CNBC Arabia reported, citing the firm’s CEO Thamer Al-Muhid.

“The facility is the first-of-its-kind in the region,” Al-Muhid said, adding that the project would be an addition to the local content development.

He also noted that the company is in talks with the Saudi Industrial Development Fund (SIDF) to contribute to 75% of the project’s financing.

On the company’s debts and dividends, the chief executive said that the company will be making an announcement soon, following the disclosure of its financial results.

Saudi Chemical Holding Co. announced, on March 8, the beginning of construction works for an explosives and military products manufacturing facility with a total investment of SAR 1 billion over the next 5 years.