After signing a memorandum of understanding with Rabigh Refining and Petrochemical Co., better known as Petro Rabigh, Saudi Top Trading Co. announced plans to construct a new SR100 million ($26.59 million) plastics factory in the Rabigh Plastics Technology Complex.

According to a release, the factory will be built in two phases with the first costing SR60 million and the second SR40 million.

In the Rabigh Plastic Technology Complex, the facility will be 34,000 square meters in size and produce 50,000 tonnes of polymer compounds, rubber and industrial waxes every year for 30 years.The release also noted that Petro Rabigh will provide rubber, industrial wax and polymer scraps for the new business.

It was said that after all agreements linked to this MoU were concluded, the financial impact of this project will be calculated.

However, STTC reported on Tadawul that its chairman, Abdullah Muhammad Al-Ajmi renounced his earnings for 2022 and that the board of directors has recommended giving shareholders cash dividends of 120 percent or SR12 per share.

The Japanese company currently operates the Rabigh Plastic Technical Center, which offers technical assistance, education, and training in feedstock supply agreements, warehousing, plug-and-use utilities, and plastic processing technology.