ADVANCED PETROCHEMICAL COMPANY ANNOUNCES THE SIGNING OF OFF-TAKE AGREEMENTS BY ITS SUBSIDIARY FOR THE SALE OF POLYPROPYLENE PRODUCTS

ELEMENT LIST EXPLANATION
Introduction Advanced Petrochemical Company (“ADVANCED”) is pleased to announce that its subsidiary, Advanced Global Investment Company (“AGIC”, a wholly owned subsidiary of ADVANCED), has signed long-term off-take agreements for the sale of Polypropylene with Vinmar International LLC of USA (250,000 metric ton per annum), Tricon Dry Chemicals LLC of USA (250,000 metric ton per annum) and Mitsubishi Corporation of Japan (120,000 metric ton per annum).
Date of Announcement of the Award 2020-12-28 Corresponding to 1442-05-13
Contract Subject Matter Polypropylene Long Term Off-Take Agreement(s)
Date of Signing the Contract 2020-12-28 Corresponding to 1442-05-13
Contract Value In accordance with marketing fees specified in the agreements based on prevailing market prices during the term of these agreements.
Contract Details Sale of Polypropylene to be manufactured by Advanced Polyolefins Company (“APOC”) (a Saudi closed joint stock company under incorporation), a joint venture between AGIC and SK Gas Petrochemical Pte. Ltd. (a subsidiary of SK Gas Co., Ltd.) with a nameplate capacity to produce 800,000 metric ton per annum Polypropylene in Jubail Industrial City, Kingdom of Saudi Arabia.
Contract Duration These agreements will be effective from the date of commercial operations of APOC until December 31, 2028.
Financial Impact and the Relevant Period The signing of these off-take agreements will impact the financial results for these years based on prevailing market prices.
Related Parties There is no a related party.
Additional Information Securing a long-term off-take commitment from these renowned and experienced off-takers is a significant milestone for the success of this joint venture, represents confidence on Advanced capabilities and expertise and will also help to achieve Advanced's long term strategic plans and will improve the profitability of ADANCED and APOC due to the fair and competitive commercial terms.