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Monday , February 6 2023

PIC transfers ownership of fertilizer factories’ assets at a value of $18 m

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KUWAIT CITY, April 11: The Petrochemical Industries Company (PIC) announced on Saturday the signing of a notice of transferring the ownership of the assets of its fertilizer factories in Shuaiba Industrial Area at a value of $18 million. The company’s CEO, Mutlaq Al-Azmi, said in a press statement that the ownership transfer notification was signed with the company Nasser Mohammed Al-Baddah and his partner for General Trading and Contracting in light of the sales contract that was signed with them.

Al-Azmi explained that the factories were put up for sale after completing all the procedures and obtaining the approvals of the company’s board of directors, the KPC board of directors and the Supreme Petroleum Council, as the contract was signed after the award on December 16, 2021.

He added that the offer to sell the factories’ assets was open to companies from inside and outside Kuwait and was completed, conduct two rounds of negotiation to obtain the best results and award the auction to the company that offered the best price. He stated that the terms of the contract included the monitoring of the Petrochemical Industries Company to implement the project to dismantle the factories, which may extend for 36 months, with the aim of ensuring compliance with the laws of the company and its social responsibility and achieving all health, safety and environment requirements.

Al-Azmi pointed out that the company suspended the fertilizer factories on June 30, 2018 based on the decision of the Kuwait Petroleum Corporation to permanently close the fertilizer factories and go to implement new ambitious investments and projects to achieve an added value on Kuwait’s hydrocarbon resources and support the national economy. He indicated that the closure decision also comes in implementation of the KPC 2040 strategy for petrochemical industry activity, as it seeks to expand and grow through projects inside and outside Kuwait to produce and market basic and specialized petrochemical products to achieve the desired goals by reaching a leading position in the petrochemical industry , (KUNA)