RIYADH: Methanol Chemicals Co. has signed a strategic agreement of SR500 million ($133 million) with Global Co. for Downstream Industries to produce specialty chemicals.
The partnership aims to identify other chemical materials in order to explore the possibility of producing them, Chemanol said in a bourse filing.
The agreement enhances Chemanol’s long-term plans for strategic transformation into an industry leader in specialty petrochemical production, it added.
The two companies are currently working on preparing the economic and technical feasibility studies for future projects, coordinating with the competent authorities for approvals and licenses, identifying global technology providers and identifying sources of funding.
The financial impact will be assessed once all studies are complete and market changes are taken into consideration, said the company.
On Feb. 13, Chemanol signed a non-binding initial agreement with Global Co. for Downstream Industries in order to explore potential collaborations.
