Saudi Chemical Co. Holding (SCCH) and its subsidiary, Saudi Chemical Co. Ltd. (SCCL), have recently inked a non-binding memorandum of understanding (MoU) with Dyno Nobel, marking a significant stride in the chemical industry. The collaboration is geared towards establishing a state-of-the-art facility in Ras Al Khair to produce ammonium nitrate and nitric acid.
According to a statement released to Tadawul, the MoU spans a six-month duration, during which comprehensive preliminary studies and financial modeling for the project will undergo rigorous re-verification. Specialized engineering companies will be engaged to craft preliminary designs, paving the way for a conclusive assessment of the project’s feasibility.
This groundbreaking initiative is set to be the first of its kind in the region, playing a pivotal role in supporting vital sectors and strategic projects aligned with the Kingdom’s Vision 2030. The primary objective is to localize the production of essential raw materials required for the manufacturing of both civil and military explosives. This move is anticipated to fuel the development of defense and mining industry solutions within Saudi Arabia.
While the financial impact of the MoU is yet to be disclosed, Group CEO and Managing Director Thamer Al-Muhid expressed confidence that the collaboration will foster innovation, create value, and contribute to the development and localization of the Kingdom’s industrial landscape.
Notably, in February 2023, SCCL, in collaboration with a local company, secured a gas allocation letter from the Ministry of Energy to establish a facility dedicated to the production of nitric acid and ammonium nitrate, as per information available from Argaam. The facility is projected to boast an annual production capacity of 440,000 tons for nitric acid and 300,000 tons for ammonium nitrate. This strategic move positions Saudi Chemical Co. as a key player in advancing the chemical industry and aligning with the Kingdom’s ambitious Vision 2030.