Published On:February 21 2015
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Deal signed for SR1.5 billion Jazan sugar refinery.
Prince Turki bin Mohammed bin Nasser, chief promoter of Jazan Industrial City, has signed an agreement with Shree Basaveshwar Sugars Ltd. (SBSL) of India to establish an SR1.5 billion sugar refinery project in the new industrial city located south of the Kingdom.
Dilip Desai, executive director of SBSL, signed the agreement on behalf of M.B. Patil, president of the company, who is currently the minister of water resources in the government of Karnataka. The project will be completed for commercial production in 18 months.
The signing ceremony in Jazan was attended by Sheikh Rafik Mohammed, chairman of Gammon Group, which is developing the SR75 billion new industrial city, which will have various manufacturing projects required by the Kingdom, including pharmaceuticals and food industries.
The sugar refinery project will require 200,000 square meters of land, loading and unloading facilities and about 400 skilled and semiskilled workers. The Saudi government offers loans worth 75 percent of the project cost for companies investing in the Jazan city.
Speaking to Arab News after the signing ceremony, Desai emphasized his company's plan to set up a sophisticated and highly energy efficient Raw Sugar Refinery Project in the Kingdom with active cooperation of Gammon and other agencies.
'The finished product of refined sugar will meet the needs of the local market and be exported to the nearby counties if necessary,' he said. While designing the plant, the project team will take all the care and caution necessary to make it environmental friendly, he added.
Speaking about the company's entrepreneurs, Desai said they are highly experienced in various fields spanning education, industry, multispecialty hospitals, agriculture, administration and social work. 'Their vast and rich experience will be utilized in the new venture to make it a big success,' he added.
He said the cost of the project will include prices of land, equipment, buildings, steel structures, essential services, laboratories, workshops, warehouses for storing raw materials and finished materials, liquid storage tanks and molasses tanks.