MOSCOW (MRC) -- 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, said Argaam.
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.
We remind, Rabigh Refining and Petrochemical Co. (Petro Rabigh) has signed three memorandums of understanding (MoUs) with investors to set up manufacturing plants in the Rabigh PlusTech Park. The first MoU was inked with Pure Life Industries Middle East Co. to manufacture 80,000 water filters and flat ceramic membranes a year, the company said in a statement published on the Saudi stock exchange. The second MoU was signed with Saudi Top Co. to produce 50,000 tonnes of recycled polymer compounds per annum.