Basic Industries postpones operation of its Iron Chloride and metal surface treatment plants

Basic Industries Chemicals postponed commercial operations of its SAR 15 million Iron Chloride and SAR 10 million Metal Surface treatment plants because of delays in installing some equipment, the company said in a statement to the Saudi bourse, Tadawul.

The commercial operations are expected to start in two months and its financial impact will be reflected in 2015.

The Iron Chloride project will start commercial operation early 2015 with an annual capacity of 50,000 tons. The revenues expected are about SAR 16 million, with SAR 4 million in net income in the first year. Sales are expected to increase to SAR 30 million in the following years, with SAR 10 million in profit.