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Swicorp, CDC join hands on Saudi solar JV

Riyadh, March 26, 2008

Swicorp Joussour Company has joined hands with Chemical Development Company (CDC) of Saudi Arabia, and NorSun of Norway to set up a polysilicon plant in the industrial city of Jubail in Saudi Arabia.

Swicorp Joussour is a Saudi joint stock company capitalised at SR2.67 billion ($712 million) launched by Swicorp.

NorSun will initially own 50 per cent of the shareholding in the company, with Swicorp Joussour and CDC holding the balance.

The transaction is aligned with Swicorp Joussour Company’s focus on energy and energy-intensive industries that leverage the competitive advantages of the region.

This project has attracted two top tier companies to the region, NorSun and SunPower, both of which will be off-takers of the project.  The production capacity of polysilicon at the initial plant will be the equivalent of 500 MW per year. Commercial production is planned to commence in 2010. The site will allow for subsequent expansions up to an annual production capacity equivalent to 2000 MW.

"Jubail is an excellent location for this polysilicon plant allowing Swicorp Joussour and its partners to benefit from the world class infrastructure and competitive energy costs in the Kingdom,” said Faysal Hamza, executive director, private equity, Swicorp Joussour. 

“In addition, this project is a very compelling investment for our shareholders with the solar industry’s projected growth of more than 30 per cent across the value chain and its contribution towards developing alternative energy in the region,” he added.  
 
In the Middle East, alternative energy is a new area of interest, which has gained recent attention owing to the pressing need for economies to look towards diversified energy sources for future generations.

Ibrahim Al Humaidan, president of CDC, said harnessing diversified sources of energy was critical to the development of tomorrow’s economies.

'We are proud to be involved in launching with our partners the first plant of its kind, creating a nucleus for the solar industry in the Kingdom of Saudi Arabia,” he observed.

The announcement came even as Swicorp was set to speak at the 'Emerging Markets Private Equity Forum' in New York from 27 to 28 March.

Swicorp are lead sponsors at the event, where private equity emerging markets fund managers and investors will gather to discuss the latest developments in global emerging markets, examine optimum ways of accessing and deploying capital and network with peers from around the world.-TradeArabia News Service




Tags: Saudi | solar | project | plant | swicorp | join | CDC |

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