Petrochemical firm Saudi Kayan said it was seeking bank financing with the help of main shareholder Saudi Basic Industries Corp to cover a $2.4 billion rise in the building costs for a production complex.
Kayan has said that up to the end of March it had spent 35.4 billion riyals ($9.4 billion) on the construction of the Jubail-based giant complex, which it projects will have an annual production capacity of more than 4 million tonnes of petrochemical and chemical products.
"It is expected that the gross cost of the project will rise by approximately 24 percent or around 9 billion riyals ($2.4 billion)," Kayan said in a statement to the Saudi bourse. "The company is working on necessary arrangements to obtain financing from one or several banks to cover the increase in costs and support from the main shareholders to ensure the completion of all plants in the complex within the fixed deadline," it said. Kayan Chairman Mutlaq al-Morished told Reuters the company would organise a loan with help from its shareholders, including SABIC.
Kayan plans to start full commercial operations at 15 out of 16 units before the end of 2011, Mosaed al-Ohali, SABIC's executive vice-president for manufacturing said last week.