SIPCHEM PREPARES FOR EVA PLANT TRIAL OPERATIONS

With reference to its announcement on September 26, 2013, Saudi International Petrochemical Company (Sipchem) announces success of operating utility units, offsite units and trail operation of some process units of ethylene vinyl acetates (EVA) & low density poly ethylene (LDPE) plant owned by International Polymers Company (an affiliate of Sipchem) at its complex in Jubail Industrial City on Thursday, December 30, 2013. By this accomplishment, the company has completed the final phase which includes installation and testing of all main equipment and modules, and completion of basic preparations, prior to trail operation phase by phase, expected during First quarter of 2014. The percentage of completion of the construction and readiness for the initial start-up is 99.7%. Plant capacity is 200 KTPA of ethylene vinyl acetates (EVA) & low density poly ethylene (LDPE).

EVA & LDPE products are in line with Sipchem strategies to implement downstream projects that are integrated with Sipchem current products to satisfy local needs and in addition to meet international demand. Raw materials required for EVA and LDPE production are ethylene which will be supplied by Jubail United Petrochemical Company (SABIC affiliate) and vinyl acetate monomers (VAM) which will be supplied by International Vinyl Acetate Company (Sipchem affiliate).

Sipchem will announce trail operation and financial impact or any other developments on due course. It is worth noting that the total cost of construction of this project is SR 3 billion. Sipchem owns 75% of International Polymers Company (IPC) while Hanwha Chemical Company of Korea owns 25%.