Idea Soda Ash and Calcium Chloride (ISACC) announced that Sanabil Investments has become a strategic founding partner of Khair Inorganic Chemical Industries Company (InoChem) project with 30% share, which marks the completion of the capital raise ahead of the company's incorporation. The move is in line with Sanabil's strategy of putting direct local investments to bolster the Kingdom's plan to localize industries and support non-petroleum investments. InoChem is expected to reach SR2.125 billion in total investment, of which SR800 million in equity has been paid in full by Sanabil and other private sector corporations and investors, all setting the stage to establish InoChem, which is poised to become the first and largest producer of its kind in the Middle East and North Africa with annual capacity of 600,000 tons. The Royal Commission of Jubail and Yanbu had allocated one million square meter of land in Yanbu to the company's industrial complex, which is slated to be completed in 36 months with Ministry of Petroleum and Mineral Resources oversight. The company is set to approach the Saudi Industrial Development Fund and national and regional banks to secure Shariah-compliant project finance, which will enable it complete its financing plan in cooperation with NCB Capital, which had been appointed as financial advisor to advise on InoChem's structure and manage the raising of capital through investments from Sanabil and private sector investors. "Our investment in InoChem comes as part of our strategy on direct local investments," said Ibrahim Al-Romaih, chief executive officer of Sanabil Investments. "We have been involved in other distinguished investments before, and today we are confident in InoChem's ability to add to this and compete with products that will replace imports, which, in turn, would bolster soda ash and calcium chloride-based industries in the Kingdom, such as the production of glass and chemical detergents." Saied Basamh, nominated board member of InoChem and representative of Al Samh Company (one of the company's founding partners), said that securing the necessary funding to go ahead with establishing the company is "positive confirmation of the confidence the business community has in the Kingdom's industrial sector, especially in the field of inorganic chemicals, and how strongly they feel towards the viability of investments in non-oil sectors" "Having an investor of Sanabil's caliber as a strategic partner goes to show just how distinguished the project is," he said. "Their involvement adds expertise to the board, and, with our strategic partners, we are fully prepared to execute the development of the project" AbdulAziz Yahya Al-Muaiyyad, InoChem's CEO, said that the project is yet another affirmation of the strength of the Kingdom's economy and global impact. "InoChem is proof positive of the Kingdom's ability to bring completely new industries into the region, as well as the ability of Saudi manpower to transfer and master new technologies and every facet of management," he said. "This has been proven by the multiple successes and astounding developments of many major strategic industrial companies, which in turn prove the Kingdom's capacity to pioneer the region's industrial base". He added "InoChem's primary objective is to cover demand for soda ash and calcium chloride in the region, while providing job opportunities for locals." Wassim Al Khatib, head of investment banking at NCB Capital, said that the Kingdom's industrial sector is "one of the strongest magnets of direct investment, especially when sound financial and governance structures are in place." He added, "We are happy to complete this phase, which indicates that InoChem will become one of the leading companies in the inorganic chemical industries sector." — SG
