Further to the announcement published on Tadawul's website on 04-09-2014 related to approval of Advanced Petrochemical Company (ADVANCED) for Equity Investment in PDH Plant with SK Gas for the Production of Propylene in South Korea, ADVANCED announces that its subsidiary, Advanced Global Investment Company (AGIC), which is owned 95% by ADVANCED, has signed on Thursday (September 11, 2014) a joint venture agreement with SK Gas Co. Ltd. (SK Gas) to establish SK Advanced Co. Ltd. (JV Co.) in Ulsan, Korea for the production of Propylene (PDH Plant). The total cost of the PDH Plant is expected to be approx. US$ 1 billion (SR 3.75 billion) and the project will be financed 40% by equity from shareholders and remaining 60% will be financed by the JV Co. through borrowing from lenders. AGIC will own 35% equity stake which will be financed by Advanced. The project has commenced the construction activities and the PDH plant is scheduled to start up in 1st half of 2016, with a design capacity of 600,000 Metric Tons per annum. The financial impact of above investment is expected after the commencement of commercial operation of the PDH Plant in 2016.
Any Additional Information will be announced in due course.
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