Under a 30-year lease contract signed by DP World and Petrochem
Expansion of a chemical plant in “Jebel Ali” with investments amounting to 330 million dirhams
Bin Sulayem (right) and Mehta during the signing of the agreement.
From the source
DP World, Emirates Region, signed a contract with Petrochem Middle East, the largest distributor of chemicals in the Middle East and Africa, to develop a chemical plant on berth No. (7) next to the chemical berth in Jebel Ali Port, where the company will invest Under the agreement, from 80 to 90 million dollars (from about 293 to more than 330 million dirhams), in return for a lease contract for 30 years, through which it expands the scope of its business in the region.
A statement issued yesterday stated that the agreement was signed by Sultan Ahmed bin Sulayem, Chairman and CEO of DP World Group, and Yogesh Mehta, CEO of Petrochem Middle East, in the presence of the CEO and General Manager of DP World - Emirates Region. and Jafza,” Abdullah bin Demaithan.
Huge facility
The 400,000-square-foot facility is expected to be completed by the third quarter of 2023.
The new plant, upon completion, will provide raw chemical materials in large quantities for the traditional and new industries that will be established in the UAE.
The plant will have a total capacity of 40,000 cubic meters to store different products, and will be equipped with distillation and processing units.
favorite destination
Bin Demaithan said: “Over the past years, the UAE and the Middle East in general have been considered the preferred destination for companies operating in the petrochemical sector,” noting that despite the many fluctuations that the market witnessed due to the repercussions of the pandemic, the production of chemicals in the Gulf Cooperation Council countries increased by 1.5% during 2020, compared to a global decline of 2.6%.
Bin Demaithan continued: “There is no doubt that our new strategic partnership with (Petrochem Middle East) was the result of a long-term relationship with the company, and it is the best evidence of the prosperity witnessed by this sector, which is a priority for the UAE and the region in general, and (Jafza) with its distinguished location. Which represents a strategic gateway to the Middle East, Africa and South Asia, and contributes about 70% of the UAE’s foreign trade in terms of petrochemical products, which highlights the role we play in this sector.”
growth
For his part, Mehta said: “Since the establishment of Petrochem Middle East in Jafza, the ideal business environment has contributed to the growth of the company's business, with annual sales currently exceeding 2.5 billion dirhams, and with the launch of this new project, we expect to achieve short and long-term gains. The term ranged between 10 and 15% of our investments.”
Logistics Business Center
The integrated logistics business center of "DP World - Emirates Region", which includes Jebel Ali Port and Jebel Ali Free Zone "Jafza", has facilitated chemical trade in the region and provided logistics services through its advanced facilities, as the port supports more than 10,000 A company and a factory in the chemical sector, in addition to a petrochemical complex in “Jafza” that extends over an area of four million square meters, and includes more than 500 petrochemical companies with more than 6,500 employees.
Abdullah bin Demaithan: "Jafza contributes about 70% of the UAE's foreign trade in terms of petrochemical products."
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