FILLING & PACKING MATERIAL. MFG. CO. (FIPCO) ANNOUNCES SIGNING OF A FREAMWORK AGREEMENT WITH SAUDI BASIC INDUSTRIES CORP. (SABIC) FOR AN ESTIMATED VALUE OF SAR 86,754,129 (Excluding VAT)
| Element List | Explanation |
|---|---|
| Introduction | Filling & Packing Materials MFG. Co. (FIPCO) announces the signing of a framework agreement with Saudi Basic Industries Corp. (SABIC) to manufacture and supply of large woven plastic bags “Jumbo Bags” for a period of three years, with an option to extend for an additional two years. The estimated value of the agreement amounts to SAR 86,754,129 (Eighty-Six Million, Seven Hundred Fifty-Four Thousand, One Hundred Twenty-Nine Saudi Riyals), excluding Value Added Tax (VAT), considering that the contract value is subject to variation in accordance with fluctuations in raw material prices, whether upward or downward. The supply term will extend for thirty-six months, with the possibility of extension for an additional twenty-four months. The financial impact of this contract is expected to commence in the first quarter of the fiscal year 2026. |
| Date of Announcement of the Award | 2026-02-24 Corresponding to 1447-09-07 |
| Contract Subject Matter | Manufacture and supply of large woven plastic bags “Jumbo Bags” in accordance with the agreed quantities and specifications. |
| The Entity with Which the Contract was Signed | Saudi Basic Industries Corp. (SABIC) |
| Date of Signing the Contract | 2026-02-24 Corresponding to 1447-09-07 |
| Contract Value | SAR 86,754,129 (Eighty-Six Million, Seven Hundred Fifty-Four Thousand, One Hundred Twenty-Nine Saudi Riyals), excluding Value Added Tax (VAT) |
| Contract Details | Manufacture and supply of large woven plastic bags “Jumbo Bags” in accordance with the agreed quantities and specifications, considering that the contract value is subject to variation in accordance with fluctuations in raw material prices, whether upward or downward at the time of order placement. |
| Contract Duration | Three years commencing on 01/01/2026 and ending on 31/12/2028, with an option to extend for an additional two years. |
| Financial Impact and the Relevant Period | The contract is expected to have a positive financial impact commencing from the first quarter of the fiscal year 2026. |
| Related Parties | There are no related party transactions in connection with this contract. |
| Additional Information | – FIPCO signed the agreement on Feb. 12, 2026. – SABIC signed the agreement on Feb. 24, 2026. – The fully executed copy of the agreement was received by email on Mar. 02, 2026. |