ADVANCED PETROCHEMICAL COMPANY ANNOUNCES THE COMMENCEMENT OF COMMERCIAL OPERATIONS OF ITS JOINT VENTURE PDH PLANT IN SOUTH KOREA
Further to previous announcement published on Tadawul's website on March 15, 2016 regarding the trial operations of its Joint Venture PDH Plant, Advanced is pleased to inform its shareholders that PDH Plant of SK Advanced Co. Ltd. (SK Advanced) has been running safe and stable at design capacity for one full month from the date of successfully completing the performance tests on April 13, 2016 in accordance with the technology license and EPC contract. Accordingly, Advanced would like to declare the commencement of commercial operation of PDH Plant from May 14, 2016 after completing all the legal and regulatory formalities for the inclusion of 3rd Joint Venture partner as announced earlier on January 19, 2016.
The PDH plant is designed to produce 600,000 Metric Tons per annum of propylene. It is worthwhile to mention that Advanced Global Investment Company (which is 95% owned by Advanced) owns 30% shares in the SK Advanced. The financial impact due to the commencement of commercial operations of PDH Plant including the sale of propylene produced from April 1, 2016 will be reflected in the results of second quarter of 2016 based on the prevailing market prices.