INOCHEM begins with the trial runs at its factories at Ras Al-Khair Industrial City, Saudi Arabia

In a significant development for Saudi Arabia's industrial sector, Sahara International Petrochemical Co. (Sipchem) unveiled the commencement of trial operations of Khair Inorganic Chemical Industries Co. (InoChem) at its factory in Ras Al-Khair Industrial City. The trial, which began on November 10, is a critical phase preceding the commercial launch of the factory. SIPCHEM has a part ownership over INOCHEM.

The total project cost is estimated at SAR 2.9 billion (USD 773.8 million). The facility is designed to have a staggering production capacity, capable of producing 300,000 tons of Soda Ash and 350,000 tons of Calcium Chloride annually.

Sipchem highlighted that the trial operations are essential for testing the plant equipment's efficiency. The company will continue to monitor the performance of the factory until all equipment is verified to meet operational standards. The financial impact of this new venture will be assessed following the commencement of commercial operations. Sipchem has committed to announcing any significant developments in compliance with relevant laws and regulations.

Holding a 30% stake in INOCHEM, Sipchem reported a 70% year-on-year decline in third-quarter net profit. Th dip is primarily slated to the slashed selling prices and slumped gains from investment in a joint venture and associates.

About INOCHEM

Khair Inorganic Chemical Industries Co. (InoChem) is a pioneering industrial entity, operating a vast 800,000 sqm complex in Ras Al-Khair, Saudi Arabia. As the first Soda Ash producer in the GCC and the largest in the MENA region, InoChem boasts an impressive annual production capacity of 300,000 MT of Soda Ash. Furthermore, it holds the distinction of being the world's largest manufacturer of Calcium Chloride, producing 348,000 MT annually in diverse grades, densities, shapes, and sizes. This achievement is underpinned by InoChem's commitment to cutting-edge technologies and equipment.

About SIPCHEM

Founded in 1999, SIPCHEM, a leading petrochemical company, excels in producing sustainable, high-quality polymers and petrochemicals. With a global presence in over 100 countries, SIPCHEM, valued at $5.3 billion, merged with Sahara Petrochemical in 2019 to enhance its market position. Aligned with Saudi Vision 2030, the company is renowned as a top player in Saudi Arabia's $1.3 trillion Shareek investment program.

According to the article by Procurement Resource, SIPCHEM unveils that INOCHEM has commenced trial operations at its new factory in Ras Al-Khair. This pivotal step, integral to the commercial launch, involves a SAR 2.9 billion project with an annual output of 300,000 tons of Soda Ash and 350,000 tons of Calcium Chloride. As a significant stakeholder, SIPCHEM emphasizes the importance of these trials for operational efficiency, with financial impacts to be assessed post-commercial launch.