Basic Chemical Industries Co. (BCI) has signed a memorandum of understanding with CP Kelco for jointly building and operating a xanthan gum facility to be located in Jubail.

Subject to further engineering feasibility, the plant will have a production capacity of between 5,000 and 10,000 tons. This capacity will be dedicated to oilfield application markets both within the Kingdom as well as for export. The main client for local consumption of the gum is Saudi Aramco, the world largest oil producer, and Saudi Arabia National Oil Company.

CP Kelco headquartered in Atlanta, Georgia, USA, is a major producer of specialty hydrocolloids with offices and facilities across the globe. Featuring an extensive range of specialty hydrocolloid solutions, CP Kelco leverages its capabilities to bring concepts and ideas to real-world products in a broad range of applications.

Serving over 100 countries, CP Kelco established the quality and safety standards the industry is measured against. CP Kelco ingredients touch a wide variety of industrial applications, consumer and household products, tailored to meet the needs of regional consumers. Key product lines are gellan gum, pectin, cellulose gum, xanthan gum, carrageenan, arboxymethyl cellulose, diutan gum and microparticulated whey protein concentrate, as well as other unique biopolymers.

BCI headquartered in Dammam has been listed in Saudi stock market (Tadawul) since 2008. The company has been producing basic chemicals, including chlorine, caustic soda and hydrochloric acid, and engaging in two joint ventures producing specialty chemicals.

The main clients of BCI are major industry players such as Saudi Aramco, SABIC, Procter & Gamble and major manufacturers in the GCC as well as government bodies. BCI, as parent for six companies, has wide ranging chemicals serving most of the industrial sectors.