Sipchem inks Letter of Intent with Hoyer Middle East to expand reach of petrochemical products

Sipchem inks Letter of Intent with Hoyer Middle East to expand reach of petrochemical products
Published: 6 October 2019 - 3 a.m.
By: Martin Menachery
Sahara International Petrochemical Company (Sipchem) signed a Letter of Intent (LoI) with Hoyer Middle East to further enhance the reach of its chemical products.

The agreement is in line with Sipchem’s vision to expand to a full-fledged distribution company capable of delivering products and services to both large and small-to-medium businesses located in the kingdom and internationally.

Hoyer Middle East is part of the HOYER Group, one of the worldwide market leaders in moving liquids, including chemical products, by road, rail and sea.

The signing took place during a forum organised by Sipchem, in collaboration with Argus Media, titled ‘Sipchem-Argus Petrochemical Forum’, at the Sipchem Technology and Innovation Center ‘Manar’ on 29 September 2019. The forum was attended by Saleh Bahamdan, chief executive officer of Sipchem and more than 150 experts from various petrochemical companies in the region.

During the forum, representatives of both Sipchem and Argus Media discussed the challenges facing the petrochemical industry in 2020. Bahamdan provided an update on Sipchem’s progress following the successful merger of equals between Sipchem and Sahara Petrochemical Company.

This new business venture is in line with Sipchem’s commitment to support local industries within the kingdom. The agreement will create new opportunities for SMEs within the kingdom and at the same time unlock additional value potential for Sipchem.

Bahamdan commented: “We are pleased to announce that we have signed the Letter of Intent with Hoyer Middle East as it is yet another step forward in our growth strategy. I believe that this is a major building block that will further strengthen Sipchem’s position as a leading petrochemical products supplier in the kingdom and internationally. At Sipchem, we believe that the chemical industry’s growth will continue, driven by positive market dynamics.

Sipchem’s growth to date and future expansion plans are in line with the strategic goal of Saudi Arabia’s Vision 2030 to build national champions with strong local and international reach in a sector that has been identified as a priority for the future economy of the kingdom.

Hoyer has been one of the world’s leading bulk logistics providers since 1946. It has extensive know-how in the provision of complex services, and has special customer proximity. It develops and implements comprehensive solutions in worldwide bulk logistics, particularly in the chemical, food, gas and petroleum industries.

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