JEDDAH, 23 October 2005 — Toyo contracting company has filed a lawsuit against Saudi Basic Industries Corp. (SABIC) after the two failed to reach an agreement on payment of arrears for a major SABIC project in Jubail carried out by the Japanese firm.
The Court of Grievances is looking into the case in which Toyo claimed hundreds of millions of dollars arising as a result of its construction of a large petrochemical complex in Jubail, which belongs to Petrokemya, a wholly-owned subsidiary of SABIC, a press statement said.
The complex, which was completed two years ago, operates with 100 percent production capacity. The complex ranks as one of SABIC’s most successful projects in terms of production capacity or revenues or profits, the statement said.
Informed sources said Toyo was demanding arrears of the value of the contract it had signed with SABIC, in addition to other huge compensations for certain aspects of the complex.
Last year, SABIC suffered a big loss after a legal battle with ExxonMobil as an American court ordered the Saudi petrochemical giant to pay SR1.5 billion to ExxonMobil in compensations.