Advanced to raise SAR 7 bln loans to finance propylene, polypropylene plants: Chairman

Khalifa Al-Mulhem, Chairman of Advanced

Advanced Petrochemical Co. will finance the construction of its propylene and polypropylene plants in Jubail Industrial City II, through SAR 7 billion loans from the Saudi Industrial Development Fund (SIDF) and other local banks, Chairman Khalifa Al Mulhem told CNBC Arabia. 

The company obtained the approval of SIDF to raise SAR 3 billion loan and partially finance this project, in addition to another loan from local banks, which are ready to finance the project. Banks’ contribution to this funding will reach up to SAR 4 billion.
 

The project has strong economic feasibility, based on the related studies. Many banks and investors have strong confidence in this project, Al-Mulhem affirmed.
 

Al-Mulhem added that time is ripe now for expansion. During the COVID-19 crises, the prices of many materials and commodities declines, which encouraged Advanced to seize that opportunity.
 

The expansion aims to increase the company specialization in polypropylene production. It aims to boost the production of polypropylene, to be used in different materials other than those manufactured by the company, which will have a positive impact on the company and the Kingdom’s economy.
 

Advanced subsidiary, Advanced Global Investment Co. (AGIC), signed engineering, procurement and construction (EPC) contracts with Samsung Engineering Co. Ltd. and Samsung Saudi Arabia Co. Ltd. for the construction of propylene plant in Jubail Industrial City II, at a total value of $1.20 billion.