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7/14/2013 12:00:00 AM

Saudi Kayan Petrochemical Company (Saudi Kayan) announces that the Saudi Butanol Company (SaBuCo) signed a contractualagreement with Daelim (a South Korean based manufacturing company) on July 5, 2013 to construct the Butanol plant at acost of SR 1,100 Million. Construction is scheduled to begin in January 2014 with project completion anticipated forMay 2015.

SaBuCo is a special purpose joint venture company established by Saudi Kayan, Sadara Chemical Company (a joint venturedeveloped by the Saudi Arabian Oil Company and The Dow Chemical Company), and SAAC (Saudi Acrylic Acid Company whichis owned by TSOC, an affiliate of Tasnee Company and Sahara Petrochemicals Company) for the purpose of owning andfinancing a butanol production facility. The design capacity of this plant is 330,000 metric tons per annum of n-butanoland 11,000 metric tons per annum of iso-butanol. It is scheduled to start its trial run in the second quarter of 2015.The trial period is expected to last between 3 to 6 months with the financial effect realized in the financial
statements after announcing the commercial operation.