Saturday, September 20, 2008

SAFCO will permanently close its Dammam unit by September

Saudi Arabian Fertilizer Company (Safco) will permanently close its Dammam urea unit by mid-September in line with a royal decree, a company source at its affiliate SABIC said on Wednesday.

Ossama ahmed Zainy Co for industrial servicing (OZEST) has almost unloaded 80% of the catalyst in safco damam. Now OZEST is working on the NH3 converter 'A' which is one of the oldest non using pyrophoric iron oxide catalyst in the region.

The 330,000 tonne/year urea unit will close within the next month in line with a statement made by the company at the end July.

The source from SABIC (Saudi Basic Industries Corp) said the plant was old, having been constructed in 1965, adding it was now located within a residential area and these two factors supported its closure.

The statement followed a Saudi government decision to shut the plant, at which point a five-year deadline for closure was issued.

The plant also produces around 200,000 tonnes/year of ammonia for captive use, melamine and sulphuric acid.

At present, the plant was still reportedly producing urea as normal.