Sipchem
Encyclopedia
Saudi International Petrochemical Company (Sipchem)is a Saudi joint stock company
owned jointly by private sector investors of Saudi Arabia
and GCC countries. It was incorporated on 22 December 1999 with a paid-in capital of SR 500 million. The share capital
was initially increased in 2003 by issuing 3 million shares, thereby raising the capital to SR 650 million. Subsequently, in April 2005 the share capital was further raised for the second time by SR 850 million resulting in a total share capital of SR 1.5 billion.
Saudi International Petrochemical Company (Sipchem) has chosen Jubail
Industrial City to build its industrial complex for producing various chemicals because this city is considered one of the leading industrial areas in the world having all necessary infrastructure for such large projects. The availability of raw materials in the Eastern province, the presence of Saudi Aramco
that supplies required feedstocks at very competitive prices and in large quantities, the ease of export from the city via KFIP and its relative proximity to South Eastern Asian countries to which most petrochemical
s are exported, are other reasons for this choice.
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
owned jointly by private sector investors of Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
and GCC countries. It was incorporated on 22 December 1999 with a paid-in capital of SR 500 million. The share capital
Share capital
Share capital or issued capital or capital stock refers to the portion of a company's equity that has been obtained by trading stock to a shareholder for cash or an equivalent item of capital value...
was initially increased in 2003 by issuing 3 million shares, thereby raising the capital to SR 650 million. Subsequently, in April 2005 the share capital was further raised for the second time by SR 850 million resulting in a total share capital of SR 1.5 billion.
Saudi International Petrochemical Company (Sipchem) has chosen Jubail
Jubail
Jubail , is a city in the Eastern province on the Persian Gulf coast of Saudi Arabia. It consists of the Old Town of Al Jubail, which was originally a small fishing village, up to 1975 and the new industrial area....
Industrial City to build its industrial complex for producing various chemicals because this city is considered one of the leading industrial areas in the world having all necessary infrastructure for such large projects. The availability of raw materials in the Eastern province, the presence of Saudi Aramco
Saudi Aramco
Saudi Aramco , officially the Saudi Arabian Oil Company, is the national oil company of Saudi Arabia.Saudi Aramco is the world's largest and most valuable privately-held company, with estimates of its value in 2011 to be $7 trillion USD.Saudi Aramco has both the largest proven crude oil reserves,...
that supplies required feedstocks at very competitive prices and in large quantities, the ease of export from the city via KFIP and its relative proximity to South Eastern Asian countries to which most petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....
s are exported, are other reasons for this choice.