SAUDI KAYAN ANNOUNCES SIGNING OF A BUTANOL JOINT VENTURE

Further to the previous announcement, which was published in Tadawul on January 29, 2011, Saudi Kayan Petrochemical Company (SAUDI KAYAN) announced today 26/12/2012 that it has signed a three-way shareholders agreement with Sadara Chemical Company (Sadara) and Saudi Acrylic Acid Company (SAAC), to establish the Saudi Butanol Company. The new plant, which is to be established in Jubail Industrial City and will be operated by Tasnee Company , is scheduled to go on-stream in first quarter 2015, with an estimated cost of SR (1939) Million for the entire project. In addition, SAUDI KAYAN is currently working on developing export/import units for the project at the King Fahd Industrial Port in Jubail at an estimated cost of SR (180) million. The units are intended to facilitate the export of SAUDI KAYANs share of the production. The units may also be used for exporting the other partners butanol share according to specific agreements for this purpose. SAUDI KAYANs share in the butanol project as well as the export/import units are planned to be self-financed through the company's own resources and third parties. Under this agreement the three partners will have equal share in the production, which will be used for downstream industries as well as sold in the domestic and global markets. SABIC will be marketing the SAUDI KAYAN share of the butanol plant along with the excess material of Saudi Acrylic Acid Company (SAAC), both internationally and locally, based on its vast experience. The design capacity of the plant will be 330 thousand tons per year of normal butanol material and 11 thousand tons per year of iso butanol.