Alujain Corp. — Capital/Financing Update 2011

Feb 1, 2011

Alujain Announces signing of a Geotextiles Joint Venture between NATPET and LOW & BONAR PLC

2170 · 01/02/2011 09:48:08 · Announcement #20217 · View on Saudi Exchange

Alujain Announces signing of a Geotextiles Joint Venture between NATPET and LOW & BONAR PLC

Alujain announces that its subsidiary, National Petrochemical Industrial Company (NATPET) has entered in to a joint venture agreement with Low & Bonar PLC of the United Kingdom on Monday 27th Safar 1432H corresponding to 31st January 2011.

The joint venture will build a new manufacturing plant with a site near NATPETs polypropylene facility in Yanbu, at a cost of SAR 160 million of which 40% will be funded through equity and the remainder through debts From sources such as Saudi Industrial Development Funds (SIDF) and other local banks, for the design, manufacture and sale of geotextile products for the fast growing civil engineering markets in the Middle East and the Indian subcontinent. The plant will have a capacity of 17,300 tones/year of staple fiber and 9,600 tones/year of nonwoven Geotextiles .

Natpet will own a 50% stake in the joint venture while the remaining stake will be held by the partner.

Low & Bonar PLC, a listed company on the London Stock Exchange (LSE), is an international group manufacturing and supplying a wide range of performance products to the global technical textiles industry. It has a leading position in geotextiles through its Technical Fabrics business which has plants in Belgium, Hungary and China.

We are proud to have joined hands with a leading player in the geotextiles business.

The venture will develop value-added products for the local market, create employment opportunities for Saudis, and bring new technology to the Kingdom realizing the strategic objective of the Saudi governments cluster initiative.

This venture is the first of a cluster of downstream polypropylene projects under development by NATPET.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.