JUBAIL, 12 December 2007 — Saudi International Petrochemical Company (Sipchem) announced yesterday that its Acetyls companies have signed project finance loan facilities aggregating SR1.13 billion with Saudi Industrial Development Fund (SIDF). The three companies receiving funds are International Acetyl Company (IAC), International Vinyl Acetate Monomer Company (IVAC) and United Industrial Gases Company UIGC).

Abdullah Al-Saadoon, president of Acetyls Complex, said: “We are extremely pleased with the strong commitment and support demonstrated by SIDF in concluding this financing arrangement, which represents an important milestone in the development of our projects.”

IAC and IVAC, which will produce acetic acid and vinyl acetate monomer respectively for the first time in the Middle East with total nameplate production capacity approximating 450,000 tons per annum (mtpa) of acetic acid/acetic anhydride and 330,000 mtpa of vinyl acetate monomer. Both companies are jointly owned by Sipchem and Helm Arabia (Germany). Technology has been secured from Eastman Chemicals Company (USA) for the production of Acetic Acid and from DuPont Company (USA) for the production of Vinyl Acetate Monomer. The UIGC, with a nameplate production capacity of approximately 340,000 mtpa of carbon monoxide, is currently projected to be the largest facility of its kind in the world. It will supply primary feedstock for the production of acetic acid.

According to Al-Saadoon, the overall progress of the acetyls companies is more than 50 percent and the three projects are aimed to start-up operations in the first quarter of 2009. The pace of execution of this massive project, where 3,000 personnel are currently working on site, strives to match the best in the world without any compromise of safety. The recent successful completion of 7 million man-hours without any lost time injury bears testimony to this fact.

In line with its strong commitment to Saudization, the companies are training more than 100 Saudi young men in English language and technical skills. For some, this program includes hands-on training on the state-of-the art dynamic simulator for different scenarios of plant operation at the licensors’ facilities abroad.