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Nusaned earlier signed a JV with Schmid Group to build a multi utility-scale battery facility

Nusaned earlier signed a JV with Schmid Group to build a multi utility-scale battery facility



Nusaned contributes $1.6bn to GDP

Sabic’s national initiative has also secured the approval and commitment for six deals in 2019 with a total value of SR143 million ($38 million) through direct and indirect investments

August 2020

Nusaned Investment, owned by Saudi Basic Industries Corp (Sabic), the world's fourth-biggest petrochemicals firm, has contributed SR6.1 billion ($1.6 billion) in 2019 to Saudi Arabia’s GDP and created over 3,000 jobs.

“Sabic has been successfully investing in local content to stimulate the national economy and help realise the Saudi Vision 2030. Central to these efforts is Nusaned, an initiative through which a series of projects contributed in 2019 approximately SR6.1 billion ($1.6 billion) to GDP and created more than 3,000 job opportunities,” said a statement.

Nusaned brings together the public and private sectors helping small and medium-size enterprises (SMEs) get started and enabling more established ones to grow further. By supporting local business and procurement initiatives, Sabic empowers SMEs and helps reduce unemployment by building local capabilities and boosting national GDP. Nusaned also plays a key role in supporting exports through cooperation with the Saudi Export Development Authority (SEDA).

By supporting and promoting the localisation of materials, services and manpower, Sabic has been able to reduce our reliance on imports. The company’s partnerships around the world also open new avenues and opportunities.

“Our global partnerships and presence in more than 50 countries help attract investments and bring international expertise to Saudi Arabia. Through these efforts, we have enhanced the capabilities of local industries to grow and compete and have made significant progress in enabling investment, lowering unemployment and increasing the contribution of SMEs to GDP,” said Eng. Faisal Al-Bahair, VP, Local Content & Business Development Unit.

“Nusaned initiative is attracting investments in technology and innovation, procurement and manufacturing, helping create thousands of new jobs for Saudis. We are maintaining our momentum and progress toward meeting the objectives of the Saudi Vision 2030,” he added.

Sabic provides training programmes to develop technical skills and leadership capabilities of the Saudi workforce. The company recently helped create 2,215 jobs for Saudi workers while enhancing the capabilities of 85 women and qualifying them for industrial sector.

Nusaned has also secured the approval and commitment for six deals in 2019 with a total value of SR143 million ($38 million) through direct and indirect investments. These include a joint venture with German tech company Schmid Group to build a mega utility-scale battery facility in the kingdom.

The future looks bright for Nusaned as it builds an ecosystem for success by leveraging Sabic’s innovation competencies, advanced technologies and a skilled and motivated workforce. It’s a great example of how we deliver ‘Chemistry that Matters.

The Nusaned Council was established at the beginning of 2018 to follow up and implement the objectives of Nusaned to develop local content. The Council convenes three meetings annually. Its membership includes the Ministries of Energy and Labour and Social Development, Small and Medium Enterprises Authority, General Investment Authority, and Local Content and Governmental Procurement Authority.

 

Sets up WTC profile

Nusaned Investment also signed a deal with Suhul Alkhalej for Industrial Development and Investment Company (Suhul Alkhalej).

The new venture will own and operate a factory to manufacture wood-plastic composite (WPC) profiles for decking and cladding, WPC sheets, WPC doors and unplasticized polyvinyl chloride (uPVC) profiles for windows and doors.

The deal between Nusaned Investment, through Nusaned Fund managed by Albilad Capital, and Suhul Alkhalej factory will use eco-friendly compounds using Sabic raw materials, making the products more energy efficient than the traditional construction materials delivering Chemistry that Matters.

“The new venture fulfills Nusaned Investment’s mandate of investing in industrial SMEs in the Kingdom. It contributes to local content initiatives and business growth through export opportunities, all of which serve the economic diversification objectives of Saudi Vision 2030,” said Faisal Al-Bahair, VP, Local Content & Business Development Unit and CEO of Nusaned Investment.

This is the second transaction of Nusaned Investment. Earlier Nusaned Investment and Schmid Group in June 2020 announced their successful JV transaction focusing on manufacturing and technology development in the field of Vanadium Redox Flow Batteries (VRFB) after receiving all required regulatory approvals and satisfying all closing conditions. The agreement to establish the Advance Energy Storage System Investment Company, the JV, was signed in May 2019.  




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