Major Saudi Arabian fertilizer producers Sabic AN and Maaden have signed an agreement to explore potential collaboration opportunities.
The non-binding agreement aims to establish a framework for exploring opportunities within the fertilizer value chain, including the production and manufacturing of value-added products, according to an exchange filing.
The agreement is valid for three years from its signing, Sabic AN said. Sabic plans to add 2.6mn t/yr of urea capacity in the future, bringing its total capacity to around 7.4mn t/yr, after the Saudi energy ministry approved an allocation of gas for the addition in March.
The agreement was signed between Sabic AN and Maaden Integrated Fertilizer (MIFC). MIFC was incorporated in September 2023 and is a holding company for Maaden's stakes in its phosphate businesses and other key subsidiaries.
Sabic and Maaden have had a long association in the fertilizer space, with Sabic having held minority shareholdings in Maaden's Wa'ad Al-Shamal and Maaden Phosphate since their inception.
