Saudi Arabian Fertilizer Company, the first petrochemical company in Saudi Arabia, was established under Royal Act no. M/13 dated 11-05-1385H – 1965 as joint venture between the Government and the citizens of Saudi Arabia, it had a capital amount of (100 million) SR. Initially the government owned 51% of the shares in the company with the remainder in private sector, when the company showed the growth and success, the government granted 10% of its shares to the company’s Saudi workforce. This was done to encourage national industries and to recognize the hard work and dedication of the employees. The capital of the company was increased several times and its current capital is SR 2500 Million which is equivalent to 250 million shares of SR 10 each share. Saudi Arabian Basic Industries Corporation (SABIC) owns 42.99% with 57.01% being held by the private sector. Construction of Ammonia / Urea plant in Dammam was started September 1966 and commercial production for Urea & Ammonia was started March 1970 with capacity of (202,000 MT annually) of Ammonia and (330,000 MT annually) of Urea fertilizer.
Inline with company strategy of diversifying income sources; in 1979 SAFCO constructed Sulfuric acid plant with a production capacity of 100,000 per year. Sulfuric acid is used to meet Saudi Arabia’s (as well as some other Arab Gulf states) desalination needs, and the requirements of other products such as chemical cleaners, medicine, insecticides and phosphate fertilizers.
Additional income and production diversification led to the establishment of a (20,000) MT annual capacity melamine plant in 1983. Melamine is basic petrochemical used in paints, gum, décor electrical equipment, home appliances, Formica and other industries. And sought the company target achievement the utilization from the available sources. The company did a great expansion in the field of the production of the chemical fertilizers, between 1993 to 2006 by establishing seven factories in the Jubail Industrial City with capacity of (2.3 million) MT Urea (2.1 million) MT Ammonia so that the actual production to all of the products (5.3) million MT.
Safco’s highly efficient Urea plant has participated in the agricultural development of Saudi Arabia and many other countries through its effective marketing efforts.
Today, SAFCO customers are assures of receiving Urea fertilizer that meets top international standard.
SAFCO posses a good financial stability, captivate with different industrial projects & a partnership with some great companies. SAFCO sharing with SABIC owns 50% for establishing National Chemical Fertilizer (Ibn Al-Baytar), 3.7% in Ibn Rushd, 5% with SABAYEK and 1.69 in Yansab.
As the result of SAFCO experience in operating and managing of factory, SAFCO and Ibn Al-Baytar an executive merged in 1994, with preservation on censorship systems to guarantee the financial independence for each company.