Saudi polyolefins and chemicals producers Saudi International Petrochemical Co (Sipchem) and Sahara Petrochemicals have entered a binding agreement to merge their operations, in a bid to squeeze more out of their closely-situated production complexes at Jubail on the Saudi Gulf coast and improve access to capital markets.
The merged firm’s full name will be Sahara International Petrochemical Company, but Sipchem will be its shortened form. The firms will leap from numbers ten and 11 to sixth largest Saudi petchems firm (see chart). The firms are also evenly matched in terms of profits: $145mn for Sipchem and $144mn for Sahara in the first nine months of 2018. (CONTINUED - 183 WORDS)