Basic Chemical Industries Co. Announces Sale Plant equipment in the value of 19Million Saudi Riyals
| Element List | Explanation |
|---|---|
| Introduction | Basic Chemical Industries Company announces the signing of a sale contract of parts from Factory No. 3 in the First Industrial Zone in Dammam (the old factory) with International Prossplants and Equipment corp. on 06-07-2023. |
| Transaction Details | Basic Chemical Industries Company announces the signing of a sale contract of parts from Factory No. 3 in the First Industrial Zone in Dammam (the old factory) with International Prossplants and Equipment corp. on 06-07-2023 the agreement does not include parts of the plant that will continue to feed the company's remaining factories on site, such as control systems, electric power supply and other support systems. |
| Transaction Value | 19Million Saudi Riyals |
| Transaction Terms | Partial payments until the completion of the dismantling and transfer of the old factory. |
| Parties of the Transaction | - Basic Chemical Industries Co. (BCI)
- International Prossplants and Equipment corp. (IPPE) |
| Transaction Funding Method | Payments until the completion of the dismantling and transfer of the old factory. |
| Transaction Execution Date | 2023-07-06 Corresponding to 1444-12-18 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Production of chlorine and its derivatives. |
| Asset Book Value | 2,189,925 |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Revenue 2020 2021 2022
90,707,338 74,016,456 47,282,759
2020 2021 2022 COGS (48,631,366) (43,511,581) (26,315,487) |
| Transaction reasons | Chlorine production activities has been stopped at Dammam factory and a new factory was established in Jubail. |
| Expected Impact of the Transaction on the Company and Its Operations | Increasing the company's cash flows during the collection periods. |
| Details of Using The Proceeds of the Asset Sale | Management of Company's operating capital. |
| Related Parties | N/A |
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