Spanish to refine sugar in Dammam

21 March 2003
A new sugar refining plant is to be built near King Abdulaziz Port in Dammam. The project company, a joint venture between Spanish and local interests, is to be called Saudi Sugar Refining Company (SSRC). The major shareholders in the venture are Spain's Ingenieria Technical Omega, which will take a significant minority stake, and Saudi interests led by Prince Turki bin Mohammed bin Abdulaziz al-Saud and local businessman Waleed Jaafary.

The total cost of the project is expected to be Eur 69 million ($73 million), which is likely to be met by a 75:25 Debt financing may be sought from the Saudi Industrial Development Fund.

Arab Banking Corporation (ABC)has been mandated as the project company's financial adviser. ABC's appointment reflects its strong presence in Spain - its subsidiary there, Banco Atlantico, has worked with Ingenieria before, assisting it with the establishment of a refinery in Algeria. The sugar processing plant will have capacity of 1,600 tonnes a day and is expected to sell into the Saudi market and other Gulf economies.

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