SIPCHEM AND HANAWA ESTABLISHE THE SAUDI SPECIALTY PRODUCTS CO. FOR CONVERSION PROJECTS

Saudi International Petrochemical Company (Sipchem) announces that, in line with its commitment to implement what has been stated at volume of fuel and feedstock allocation required to establish EA, EVA, WCC and conversion industries issued by Ministry of Petroleum and Mineral Resources; Sipchem Chemicals Company, an affiliate of Sipchem, has signed on July 22, 2013 an incorporation agreement with Hanwha Chemicals Corporation to form a new company, under name of (Saudi Specialty Products Company) for establishing Conversion Projects in Saudi Arabia.

The Joint Venture between SCC and Hanwha comprised of two manufacturing facilities; the first one located at Hail will produce 4,000 MTPA of EVA films whereas the second one located at Riyadh will manufacture plastic moulds up to 1000 tons.

 It is noteworthy that Sipchem Chemicals Company owns 75% of new company capital while Korean Hanwha owns 25%.

Sipchem Chemicals Company will use state of the art technology of Mitsui Chemicals Tohcello (MCTI) Inc. Japan, for the EVA film project and Kiefer Werkzeugbau GmbH, Germany, knowhow transfer and project services for moulds project.

Total investment for these Conversion Projects will be approximately SR 225 Million (US Dollars 60 Million) and will create employment opportunities for around 180 personnel.

 EVA film is used for crystalline silicon and thin film solar photovoltaic module production.

 EVA film is selected to be the most optimum material for the encapsulation and it is widely used for solar cell encapsulation and perceived to be the most operating-friendly and cost effective material for solar cell glass encapsulation.

 This project is the first-of-its kind in the region and illustrates Sipchem commitment towards the Kingdom objective to become a driving force in renewable energy.

 On the other hand, Moulds Manufacturing Facility, located in Riyadh, has been designed to manufacture various types of moulds and dies used in plastic and encapsulation plants.

The facility has infrastructure to design any industrial or commercial product and there-after make prototypes of the article, and produce the product in mass by building a mold or tool for the purpose.

The facility can test the performance of the mould or die to the required standards. Riyadh Facility will help the convertor industries of polymer, metal sheets, and aluminum to obtain tools and dies to exact requirements.

 In addition to manufacturing new moulds and tools, the Facility will assist in servicing and maintenance of existing moulds and dies.

 The knowhow provider, Kiefer, has vast experience in the tool and dies manufacturing field.

 Sipchem has indicated (These projects will play a major role in the Kingdom industrial diversification and boost development in the conversion industry of the Kingdom).

 Sipchem has confirmed that its approach to join hands with major players in the global petrochemical business to support Saudi Arabia downstream manufacturing investments.

Sipchem will announce financial impact and any other developments in these projects in due course.