BCI Signs MoU with AECI to Set Up JV in Saudi Arabia

Basic Chemical Industries Co. (BCI) announced on Thursday that it signed a memorandum of understanding with AECI Ltd., a Johannesburg Stock Exchange-listed South African company and a global leader in the manufacturing of chemicals and explosives, to establish a joint venture (JV) in Saudi Arabia to localise the development and manufacturing of specialised chemicals used in water treatment and mining, in line with Saudi Vision 2030 and the National Industrial Strategy.

According to the company’s statement on Tadawul, the MoU aims to establish a strategic partnership between the two companies to localise the manufacturing of a range of chemicals, including flocculation, coagulation, and flotation, coatings, and additive chemicals used in oil and mining operations, as well as for enhancing product properties and industrial wastewater treatment.

The manufacturing facilities will be located in Jubail Industrial City, adjacent to BCI’s existing Chlor-Alkali plant, allowing the use of some of its outputs as feedstocks.

BCI stated that the JV is expected to support medium- and long-term growth by diversifying products and strengthening the value chain, in addition to supporting the goals of Saudi Vision 2030 to localise the chemical industry. Any material financial impact will be disclosed upon final agreement or any material developments in the future.