Basic Chemical Industries Co. — Capital/Financing Update 2013

Sep 15, 2013

Basic Chemical Industries Co announces the signing of a memorandum of understanding with CP Kelco

1210 · 15/09/2013 09:33:28 · Announcement #32006 · View on Saudi Exchange

Basic Chemical Industries Co announces the signing of a memorandum of understanding with CP Kelco

1. Signed the Memorandum on 14-09-2013

2. MOU will be effective from 14-09-2013 until the completion of the partnership agreement to establish an independent company

Basic Chemical Industries Co announces the signing of a memorandum of understanding with CP Kelco for jointly build and operate a xanthan gum facility to be located at Jubail within the Kingdom of Saudi Arabia. Subject to further engineering feasibility, the plant will have a production capacity of between 5 thousand and 10 thousand metric tons. This capacity will be dedicated to oil field 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 producers and Saudi Arabia National Oil Company

“CP Kelco Headquartered in Atlanta, Georgia, USA, CP Kelco is a leading 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, Carboxymethyl Cellulose, Diutan Gum and Microparticulated Whey Protein Concentrate, as well as other unique biopolymers.

BCI headquartered in Dammam, Saudi Arabia, and has been listed in Saudi Arabian Stock Market ( TADAWUL) since 2008. The company has been producing basic chemicals, including Chlorine, Caustic Soda, 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 GCC as well as government bodies. BCI ,as parent for six companies, has wide range of chemical serving most of the industrial sectors”

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.