JYIC signed a partnership deal with SABIC, VOPAK to own 20% stake in CHEMTANK

SABIC and Vopak Holding Terminals BV signed a partnership agreement with Jubail and Yanbu Industrial Cities Co. (JYIC), owned by the Royal Commission for Jubail and Yanbu, under which JYIC will become a 20% stake partner in Jubail Chemical Storage and Services Company (Chemtank).

The agreement aims at strengthening strategic integration among the three parties to scale up the scope of collaboration between local and international organizations. This will ultimately help achieve the goals of the National Industrial Development and Logistics Program, a key part of Saudi Vision 2030.

Commenting on the event, Abdullah Al-Saadan, President, Royal Commission for Jubail and Yanbu, said that JYIC enables the Royal Commission to make optimal use of its assets and provide services in the Royal Commission cities, thus achieve sustainability and efficiency. He also said that the agreement is part of Saudi Vision 2030.

“It invests in the development of the industrial investor logistical services sector, which plays an active logistical role in serving industries, especially petrochemicals. This will help create an attractive environment and enhance capabilities of the business sector,” he said.

Yousef Al-Benyan, SABIC Vice-Chairman & CEO, said the agreement builds on the historical partnership between SABIC and RCJY. It is an extension of our continuous coordination in support of the industrial sector in the Kingdom to create an appropriate environment to lay the foundation for future investment, he added. Also he recognized on the contribution of vopak as a global player in this field.

Eelco Hoekstra, CEO Royal Vopak, said: “The entry of JYIC cements a partnership in which the Royal Commission, SABIC and Vopak have jointly collaborated over the past 20 years to create a world-class supply chain infrastructure in Jubail and Yanbu. This sets a great platform to deliver further growth and efficiency in the Kingdom.”

Under the new agreement and subject to obtaining all required regulatory approvals, JYIC will own 20% of the Chemtank shares, making SABIC and Vopak Holding Terminals BV owners of 58% and 22% respectively.