Amam - Soda Ash Project Cancelled

The board of directors of the Arabian Mining & Manufacturing Co (AMAM), a Saudi Arabian joint stock firm, has decided to cancel the soda ash plant it intended to build in Jubail (in an investment exceeding SR 1bn), and to liquidate the company. AMAM's board chairman has declared that following the asignment of the project to the Japance concern Hitachi Zosen and its local affiliate Sharif-Hitachi Zosen Co Ltd, in February 1996 at a cost of SR 659m, the six US firms which produce this material united so as to corner the soda ash market, and managed to reduce their prices below cost. In this way, they dominated 80% of the Saudi market, making AMAM's project economically unfeasible. (whole item)