BCI, South African firm sign MoU to form JV in Saudi Arabia

One of BCI factories

Basic Chemical Industries Co. (BCI) signed, on May 7, a memorandum of understanding (MoU) with South African AECI Ltd. to establish a joint venture (JV) in the Kingdom aimed at localizing the manufacturing and development of a range of specialty chemicals used in water treatment and mining.

This initiative aligns with Saudi Arabia’s Vision 2030 and the National Industrial Strategy, the company said in a statement to Tadawul.

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AECI is listed on the Johannesburg Stock Exchange.

The MoU seeks to form a strategic partnership to localize the production of various chemicals, including coagulants, flocculants, flotation reagents, coatings, and chemical additives. These products are intended for use in oil and mining operations, product enhancement, and industrial wastewater treatment.

The manufacturing facilities will be located in Jubail Industrial City, adjacent to BCI’s existing chlor-alkali plant, allowing for the integration of some of its outputs as input materials for the new venture.

The MoU is valid for six months from the date of signing and may be extended by mutual consent between the parties.

BCI expects the JV to contribute to the company’s medium- and long-term growth by diversifying its product portfolio and strengthening its value chain, while also supporting the objectives of Vision 2030 to localize the chemicals industry. The company will disclose the financial impact once final agreements are reached or if there are any material developments.

The MoU signing was supported and facilitated by the National Industrial Development Center as part of its efforts to foster high-value opportunities that promote local content in the chemicals industry.