United Kingdom-based firm Ineos is slated to invest $2 billion or £1.6 billion in the Kingdom of Saudi Arabia, reports BBC. The company is set to establish its first manufacturing plant in Saudi after it finalized deals with Saudi Aramco (the Kingdom’s state oil company) and France-based Total.
Ineos Chairman Jim Ratcliffe, it is a ‘major milestone’ for the firm, as it is its first venture in the Middle East.
According to Ineos, this investment is set to manufacture chemicals for various sectors including auto, aerospace and electronics. Ratcliffe added that it will be providing ‘advanced downstream technology’ in the Kingdom. Moreover, the deal will benefit Saudi Arabians as it is expected to generate jobs.
Based on the deal’s provisions, the firm will build three manufacturing plants for chemicals. This will be located at Saudi Aramco and Total’s petrochemical complex valued at $5 billion. Production by the three companies will start in 2025.
The deal also states that the new plants will make Middle Eastern and Asian markets more accessible to the companies.
Ineos has also made investments in China, the United States, and Belgium.
Aside from placing assets in various countries, the UK energy firm has also been launching fracking tests for exploration in Britain. However, rigid the company has expressed its frustrations regarding regulations and laws that make such activities not feasible for energy companies.
Ratcliffe, the third richest man in the UK, argues that fracking is an ‘extremely safe and well proven.’ He also remarked that the company has placed £2.5 billion in capitals to the UK and that he has never profited from such ventures.
According to Ratcliffe, his company has made ‘lots of money’ in Germany, US and Belgium. The billionaire also dispelled allegations of him living in Monaco for ‘tax purposes.’