SIPCHEM ANNOUNCES INITIAL START-UP OF CABLE INSULATION POLYMERS PLANT

Reference to its announcement in Tadawul on 17/10/2011, Saudi International Petrochemical Company (Sipchem) announces commencing of initial start-up of cable insulation polymers plant owned by Gulf Advanced Cables Insulation Company (a Sipchem affiliate) located in its complex in Jubail Industrial City. Initial start-up stared on Sunday, 02/03/2014, and will continue until tests of all plant equipment. The plant will produce cable insulation polymers which are used for fabricating electrical cable insulation materials. Such specialized products are considered part of the Company's strategy to execute comprehensive transformation projects in addition to the existing products of the Company. Moreover, establishing such plant is deemed to be a part of Third Phase Development Program of Sipchem projects on one hand, the product will meet local and regional demand on the other hand; In addition to fulfilling international demand.
It is worth mentioning that raw material required for the project is Low density polyethylene (LDPE) and Ethylene Vinyl Acetate (EVA) that shall be acquired from International Polymers Company (IPC) (a Sipchem affiliate). Total estimated cost of the plant is (230) Million Saudi Riyal, financed by partners. Gulf Advanced Cables Insulation Company, a joint project owned by Sipchem and Hanwha Chemicals Company of Korea, shall market the products in the Middle East and Europe. It should be noted that the financial impact shall be reflected when commencing commercial operation. Commercial operation date or any other updates shall be announced on a later stage.