Saudi Top Trading Co. to build $27m factory at Petro Rabigh plastic facility 

Saudi Top Trading Co. to build $27m factory at Petro Rabigh plastic facility 
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Updated 26 December 2022
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Saudi Top Trading Co. to build $27m factory at Petro Rabigh plastic facility 

Saudi Top Trading Co. to build $27m factory at Petro Rabigh plastic facility 

RIYADH: A new SR100 million ($26.59 million) plastics factory is set to be built in the Rabigh Plastics Technology Complex after  Saudi Top Trading Co. signed a memorandum of understanding with Rabigh Refining and Petrochemical Co., also known as Petro Rabigh.

The factory will be built in two phases, the first costing SR60 million while the second will cost SR40 million, according to a statement to the Saudi Stock Exchange.

The facility will cover an area of 34,000 square meters and annually produce 50,000 tons of polymer compounds, rubber and industrial waxes in Rabigh Plastic Technology Complex for 30 years. 

The statement further pointed out that Petro Rabigh will be the supplier of polymer scrap materials, rubber and industrial wax for the new factory. 

The financial impact of this project will be determined later upon the completion of all agreements related to this MoU, it stated. 

Meanwhile, STTC, on Dec. 25, announced on Tadawul that its board of directors has recommended distributing cash dividends of 120 percent or SR12 per share to its shareholders, excluding its chairman Abdullah Muhammad Al-Ajmi, who waived his profits for 2022. 

The number of eligible shares is 1.2 million, and the company will distribute SR14 million in cash dividends. 

At 11:40 a.m. Riyadh time on Dec. 26, STTC share price was up 7.75 percent at SR116.8. 

Founded in 2005, Petro Rabigh produces and markets refined hydrocarbon and petrochemicals. It is a joint venture between Saudi Arabian Oil Co. and Japan’s Sumitomo Chemical. 

The Japanese firm currently runs Rabigh Plastic Technical Center, which provides technical support and training in plastic processing technology, warehousing, plug-and-use utilities and feedstock supply agreement opportunities for competitive prices. 

Besides the technical center, the company offers investment opportunities through Petro Rabigh industrial complex, also known as the Rabigh PlusTech Park, the first private Industrial Park for conversion industries in Saudi Arabia, designed to accommodate polymer compounding third-party projects.