SABIC, currently in the process of being acquired by Saudi Aramco, on Sunday announced its decision to establish a new company called SABIC Agri-nutrient Investments, which will consolidate all its equity shares and assets currently held in several companies producing fertilizers.
The plan is to transfer the 50% share it holds in Jubail Fertilizer Co. (Al-Bayroni), SABIC’s 50% stake in National Chemical Fertilizer Co.(Ibn Al-Baytar), the company’s 33.33% holding in Gulf Petrochemical Industrial Co (GPIC; Manama, Bahrain), SABIC’s 30% share in Ma`aden Phosphate Co., (MPC) and SABIC’s 15% share in Ma`aden Wa`ad Al-Shamal Phosphate Co., (MWSPC). Taiwan Fertilizer Co. owns 50% in Al-Bayroni; stock exchange-listed Saudi Arabian Fertilizer Co. (SAFCO) owns 50% in Ibn Al-Baytar; while the state of Bahrain and Petrochemical Industries Co. (Kuwait City) each own one-third in GPIC. Ma’aden holds a 70% stake in MPC and 60% in MWSPC. Mosaic owns a 25% stake in MWSPC.
In addition, SABIC has signed a memorandum of understanding with SAFCO, a producer of ammonia, urea and urea formaldehyde, for SAFCO to acquire SABIC’s investments in affiliates that produce fertilizers and related products. SABIC is currently the anchor shareholder in SAFCO. The MOU will facilitate the integration of the newly formed company, SABIC Agri-nutrient Investments, with SAFCO, subject to regulatory and shareholder approval. The integration process is expected to be completed by the end of 2019.
SABIC says the restructuring will serve as a growth platform strengthening SABIC’s ambition to grow its fertilizer business into a global leading position. SABIC has capacity to produce 5 million metric tons/year (MMt/y) of urea, 3.4 MMt/y of ammonia, 1.5 MMt/y of mono- and di-ammonium phosphate, and 900,000 metric tons/year of other complex fertilizers.
“The integration of our agri-nutrient production assets under one umbrella, represents part of SABIC’s diversification strategy and transformation program to achieve successful and sustainable long-term growth…Integration of all our fertilizer production assets will allow SABIC and SAFCO to achieve accelerated organic and inorganic growth as well as capture further operational synergies and increase overall production efficiency,” says Yousef al-Benyan, SABIC CEO.
SABIC agri-nutrients strategic business unit and its marketing, sales and technology and innovation functions will remain part of SABIC delivering the company’s 2025 strategy through its investment arm, SABIC says.
By Natasha Alperowicz
Source: Chemical Week
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?