Saudi Chemical invests SAR 380 mln in pharma, explosives sectors: CEO

Saudi Chemical Co. is pumping SAR 380 million in investments into pharmaceuticals and explosives sectors, CNBC Arabia has reported, citing chief executive officer, Mohammad Al-Badr.

A sum of SAR 180 million is injected into the pharmaceuticals sector, while the remaining SAR 200 million are invested in the explosives sector, he explained.

“The company is expanding the dry injection segment, and planning to build new specialized pharma factories,” stated Al-Badr. 

He added that Saudi Chemical seeks to coordinate with international companies to proceed with manufacturing some types of pharmaceuticals.

On the capital increase, Al-Badr also said that the company aims to boost its capital base and future activities, and bolster growth in the pharma and explosives sectors as well as to support factories expansion. 

“The capital top-up will likely boost the banks’ confidence in the company, as it was financed from retained earnings and reserves,” Al-Badr stated.

Al-Badr also expected AJA Pharma to increase sales revenue and reach a break-even level by 2020. 

The company’s general meeting will be held on September 17 discuss the board’s recommendation on increasing capital by 33.33 percent to SAR 843.2 million from SAR 632.4 million through the issue of bonus shares at 33.33 percent, data compiled by Argaam showed.