"Merging with Sahara Petrochemicals will create a big and strong company with a market capitalization of 16 billion riyals," said Ahmed Al Ohali, chief executive officer of the Saudi International Petrochemical Company (Sipchem).
The merger will have a positive impact on two companies in particular and the petrochemical sector in general. New companies will have a significant area of revenue growth, lower costs, increased interest for shareholders and greater financial strength.
Al Ohali said in a statement to CNBC Arabia that the merger assessment with Sahara Petrochemicals would be completed and final approval by the Capital Market Authority at the end of February.
According to data available at "Numbers"On October 3, 2018, SAHARA Petrochemical and Sipchem signed a non-binding memorandum of understanding regarding their business mergers, including the exchange of shares and the distribution of equity in Sipchem after the merger.
At the start of the methanol plant operation after stopping for scheduled periodic maintenance, Al-Ohali said that plant operations were very important for the company and would reflect the results of December and the coming years, demonstrating that downtime helped improve reliability and efficiency in plant performance and increased production capacity .
He explained that the company would be in the next two years periodic maintenance scheduled with other factories and this to improve their performance and improve reliability.
He pointed out that the level of operational capacity achieved during the initial stages of operations was up to 100%, and will be carried out in the next few weeks to confirm the results of increased efficiency, and technological improvements and cost reduction, which showed results in December.
As for the growth in product demand and company yields in 2019, he said that growth would be similar to this year and would range from 7% to 8% in India and would reach 6% in China, noting growth in the petrochemical sector, especially plastics.