A Complementary Announcement From Saudi Kayan with Respect to Butanol Project

This has reference to the Saudi Kayan's announcement published on Tadawul on 20/10/2015 regarding the latest updates on the Butanol plant project. Saudi Kayan announces the start of the commercial operation of the plant as of March 1, 2016, pursuant to the decision of the Board of Directors of Saudi Butanol Company. Engr. Omar Al-Amoudi, Chairman, Saudi Kayan, who gave the announcement explained that the sales and the sales costs of the plant's products will be accounted for in the income as of the date of commercial operation, according to the relevant applied accounting standards.

The Saudi Butanol Company was established as a joint venture between the Saudi Kayan Petrochemical Company (SAUDI KAYAN), Sadara Chemical Company (Sadara) and Saudi Acrylic Acid Company (SAAC), for the purpose of owning and financing the a butanol plant.

Under the agreement, the three partners will have equal stake in the production quantities for downstream use or for sales in the local and overseas markets. The design capacity of the plant is 330,000 metric tons per annum of n-butanol and 11,000 metric tons per annum of iso-butanol.

The butanol is used in producing a wide range of industrial products such as paints and solvents. Thus, the new plant will help develop the painting industry in the Kingdom allowing the investors to use the Butanol and its derivatives in starting new businesses in painting fields.