Saudi Basic Industries Corp. — Capital/Financing Update 2015

Dec 13, 2015

Addendum announcement from Saudi Basic Industries Corp. related to Kemya awarding of its SEP construction contracts in Jubail Industrial City

2010 · 13/12/2015 15:34:27 · Announcement #40375 · View on Saudi Exchange

Addendum announcement from Saudi Basic Industries Corp. related to Kemya awarding of its SEP construction contracts in Jubail Industrial City

Addendum to SABIC earlier announcement on Tadawul on June 25, 2012 in connection with the award of the Saudi Elastomers Project (SEP) construction contracts by Kemya, a SABIC manufacturing affiliate to (Daelim Industries, Technip, and Tecnicas Reunidas) to handle the engineering, procurement and construction of plants in Kemya Complex, SABIC announces the completion of the construction and mechanical works related to the operation of some units of the SEP project and starting the commissioning of carbon black and utilities units on December 13th, 2015.

The trial commissioning of the units to the commercial operation is expected to take place during the second quarter of 2016 and the financial impact of the project is expected to be reflected in the financial results of the company after the announcement of commercial operation. The trial commissioning of the remaining units of the project, and any further developments, will be announced respectively in due course.

Kemya is a joint venture (50/50) owned by SABIC and Exxon Mobil Arabian Chemical Company (an affiliate of Exxon Mobil Chemical Company). The project is expected to establish a supply of more than 400,000 metric tons of rubber (butyl, styrene butadiene rubber (SBR), butadiene rubber and EPDM), thermoplastic specialty polymers and carbon black to serve emerging local and international markets in Asia and the Middle East at an estimated investment cost of US $3.4 billion. The project also includes the construction of the High Institute for Elastomer Industries in Yanbu, product application development and support center in Riyadh, a facility for the production of polyolefin thermoplastics compounds, and a local inventory management center in Jubail Industrial City, with the aim to develop and diversify the industrial sector

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