The local AH Al-Zamil Groupis promoting a new project to produce carbon black, an additive for rubber products. The company is now in negotiations with a foreign partner to finalise marketing and technology agreements and to establish shareholdings in the new joint venture which is being formed to carry out the project.
The company has been granted a site in Jubail industrial city for the estimated $50 million-60 million plant and is now close to securing finance from the Saudi Industrial Development Fund for about half the project value. The foreign partner has completed front-end engineering and design (FEED). Zamil has chosen the UK branch of Jacobs Engineering to consult on the project and prepare the invitation to bid (ITB) for the engineering, procurement and construction (EPC) contracts. The ITB is expected to be issued to five-six contractors in early May.
Zamil is concentrating on the development of its petrochemical business. It is a leading investor in Saudi International Petrochemical Company, which is developing a world-scale petrochemical complex in Jubail. It is also involved in the Saudi Indo Petrochemical Company, which is developing a linear alkyl benzine plant in Yanbu, and it is studying plans for a new polypropylene project. Zamil has two existing smaller petrochemical interests in Jubail - Arabian Alkali Company (Soda)and Gulf Stabilisers Company.