Saudi Basic Industries Corp. — Capital/Financing Update 2014

May 26, 2014

SABIC announces signing a 50-50 joint venture agreement with Koreas SK Global Chemical to manufacture high-performance polyethylene products using Nexlene technology

2010 · 26/05/2014 16:01:04 · Announcement #34713 · View on Saudi Exchange

SABIC announces signing a 50-50 joint venture agreement with Koreas SK Global Chemical to manufacture high-performance polyethylene products using Nexlene technology

SABIC Industrial Investment Company (owned 100% by SABIC) and the Korean petrochemical company, SK Global Chemical, signed a 50-50 joint venture agreement today May 26,2014 for a total investment of US$ 595 million by self financing. The joint venture involves owning SKs cutting edge Nexlene technology and a plant that has been recently completed by SK Global Chemical at its complex in Ulsan, South Korea, with an expected annual capacity of 230,000 tons. The agreement is subject to regulatory approval.

Located in Singapore, the joint venture will manufacture a range of high-performance polyethylene products using SKs cutting edge Nexlene solution technology. Over time, production bases will be established in highly competitive polyethylene markets in Saudi Arabia and worldwide. the financial impact can not be calculated and any further significant progress will be announced in due time

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.