Saudi Basic Industries Corp. — Capital/Financing Update 2011

Jan 17, 2011

SABIC announces that a decision has been made not to proceeding with the execution of the agreement signed by and between its affiliates, SAFCO and HADEED for the construction of flat steel plant

2010 · 17/01/2011 08:36:27 · Announcement #19912 · View on Saudi Exchange

SABIC announces that a decision has been made not to proceeding with the execution of the agreement signed by and between its affiliates, SAFCO and HADEED for the construction of flat steel plant

Further to the companys announcement on Tadawul, on July 13, 2008, which stated that a 50:50 percent agreement had been concluded by and between its affiliates, SAFCO and HADEED for the construction of a flat steel plant in Jubail Industrial City. The company announces that it has been decided not to proceed with the implementation of this agreement since the results of the final studies were not encouraging. Alternatively, SAFCO will carry out feasibility studies for the construction of a new plant (SAFCO 5), in its complex in Jubail, for the production of urea with annual capacity of one million tons and is expected to start production in the second half of 2013. This will not have a material impact on the company's consolidated results.

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