ANNOUNCEMENT OF ADVANCED PETROCHEMICAL COMPANY FOR THE LATEST DEVELOPMENT FOR SIGNING THE SHAREHOLDERS AGREEMENT BETWEEN ADVANCED GLOBAL INVESTMENT COMPANY AND SK GAS PETROCHEMICAL PTE. LTD. TO ESTABLISH PROPANE DEHYDROGENATION AND POLYPROPYLENE COMPLEX IN SAUDI ARABIA
| Element List | Explanation |
|---|---|
| Introduction | With reference to the earlier announcement dated 29th March 2020 corresponding to 02/08/1441H, Advanced Petrochemical Company (“ADVANCED”), on 8th October 2020 corresponding to 21/02/1442H, further announces the signing of Amendment to the Shareholders Agreement, between Advanced Global Investment Company (“AGIC”, a subsidiary of ADVANCED) and SK Gas Petrochemical Pte. Ltd. (“SKGP, a subsidiary of SK Gas Co., Ltd.), to add an Isopropanol (IPA) plant of capacity 70,000 tons per annum, in addition to the Propane Dehydrogenation (“PDH”) and Polypropylene (“PP”) plants, that was already announced earlier (the “Project”).
The inclusion of IPA is part of strategy to promote the downstream industry in line with the Kingdom’s Vision 2030. IPA is used in variety of applications including hand sanitizers, medical applications, electronics industry, etc. By adding the IPA plant with an estimated cost of US$ 80 million (SR 300 million), the total cost of the Project (PDH, PP & IPA Plants) is currently estimated to be approximately US$ 1.88 Billion (SR 7.05 Billion). In line with the earlier announcement, the Project will be financed 25% by equity from shareholders and remaining 75% will be financed by JV Co. through borrowing from lenders. AGIC will own 85% equity stake in JV Co. which will be financed by ADVANCED while the remaining 15% will be owned by SKGP. The financial impact of the above investment is expected after the commencement of commercial operations which is expected by 2nd half of 2024. Any major development related to the Project will be announced as per related regulations and instructions. |
| Previous Announcement | ADVANCED PETROCHEMICAL COMPANY ANNOUNCES THE SIGNING OF SHAREHOLDERS AGREEMENT BETWEEN ADVANCED GLOBAL INVESTMENT COMPANY AND SK GAS PETROCHEMICAL PTE. LTD. TO ESTABLISH PROPANE DEHYDROGENATION AND POLYPROPYLENE COMPLEX IN SAUDI ARABIA |
| Date of Previous Announcement on Tadawul's Website | 2020-03-29 Corresponding to 1441-08-05 |
| Progress | 100% |
| Event's Expected Completion Date | 29th March 2020 corresponding to 05/08/1441H |
| Reasons for Exceeding the Announced End Date | N/A |
| Expenses Related to the Event, Whether They Changed or Not and Justification | No Expenses |
| Impact of the Delay on the Company's Financial Results | N/A |
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