Saudi Top Trading, Petro Rabigh sign MoU to establish SAR 100 mln factory

Saudi Top Trading Co. headquarters

Nomu-listed Saudi Top Trading Co. announced that one of its factories, Saudi Top Plastic factory, signed on Dec. 13 a memorandum of understanding (MoU) with Rabigh Refining and Petrochemical Co. (Petro Rabigh), according to a statement to Tadawul.

The MoU is to establish a factory with a total construction value of about SAR 100 million in two phases, the first with a value of nearly SAR 60 million and the second phase of approximately SAR 40 million.

The new factory will be established on an area of 34,000 square meters, and for a period of 30 years, to produce 50,000 tons annually of polymer compounds, rubber, and industrial waxes in Rabigh Plastic Technology Complex.

It pointed out that the supply of polymer scrap materials, rubber, and industrial wax for the new factory will be from Petro Rabigh.

The 12-month MoU started from signing date, Saudi Top Trading stated, noting that there are no related parties.

The financial impact of this project will be determined later upon the completion of all agreements related to this MoU, it stated.