Potential Downstream

Industries

Samir Al-Jishi

General Manager,

Strategy & Business Development

Sipchem

2

Contents

• Background about Sipchem

• Downstream Industries

• Why

• Challenges Ahead

• Cluster Program: Strategic Cluster

• Downstream based on Sipchem products

3

Sipchem …..

A story of sustainable growth

2004 2005 2008 2010 2012 2006 2011

SCC EA/BA

SCC PBT

2000

Establishment

of Sipchem as

greenfield site

IPO Rights issue Acquisition of Aectra:

expanding Sipchem

marketing into Europe

Sukuk issue:

SAR 1,800m

Establishing:

Singapore

marketing

offices

2007

SMC

2009 2013 2014 2015

Sipchem has consistently delivered value to its investors

Sipchem Operating Plants

5

International Methanol Company

1.0 Million MTPA Methanol

International Diol Company

75,000 MTPA Butanediol

International Gases Company

345,000 MTPA Carbon Monoxide

International Acetyls Company

460,000 MTPA Acetic Acid

International Vinyl Acetate Company

330,000 MTPA Vinyl Acetate Monomer

6

International Polymer Company

200,000 MTPA EVA/LDPE

Gulf Advanced Cable Insulation Company (GACI)

25,000 MTPA XLPE/SC

Sipchem Chemical Company

100,000 MTPA Ethyl Acetate/Butyl Acetate

Plants to start this year

7

Plants to start next year…..

Sipchem Chemical Company

63,000 MTPA PBT

Saudi Specialized Products Company (SSPC) – Under formation

Molds & Dies

Saudi Specialized Products Company (SSPC) – Under formation

4,000 MTPA EVA Film

SSPC

SSPC

Global Marketing Capabilities

8

To be a leading center for technology innovation to advance Sipchem

growth and catalyze the development of the downstream industry

Sipchem Product and Application Development Centre

Investing for the future Creating added value…

Sipchem PADC Center

10

Stimulate polymer product and application

development in the Kingdom

Focusing on the main Applications of:

Enhance the competitiveness of the plastics industry in the

Kingdom

• films

• adhesives

• wire and cable compounds

“The Sipchem Products Application Center”

11

Contents

• Background about Sipchem

• Downstream Industries

• Why

• Challenges Ahead

• Cluster Program: Strategic Cluster

• Downstream based on Sipchem products

12

Why Downstream ?

Sustainable Growth

Increased Profit Margin

Meaningful contribution to create more jobs

Diversify the economy of the Country

Cluster program Initiatives by the Government

Add value to gas & available materials

13

Challenges in going Downstream…

Required Competitive feedstock

supply from upstream to downstream

Securing the right

technology

Strategic interest from technology

owners

Potential Market

Technical Support

Saudi Industrial Clusters…..

14

Minerals & Metals

Automotive Plastics & Packaging

Home Appliances

Solar Energy

15

Contents

• Background about Sipchem

• Downstream Industries

• Why

• Challenges Ahead

• Cluster Program: Strategic Cluster

• Downstream based on Sipchem products

Potential Downstream opportunities ….. EVA/ LDPE

Packaging

Adhesive

Compounding Products

Consumer Goods

EVA/LDPE Sectors Product Application End use

Packaging:

• Packaging Films & Bags

• Agricultural Film

• Construction Film

• Meat & Poultry wraps

• Thermal lamination film

Consumer Goods:

•Foam for shoes

•Toys

•Lids & Closures

• Hose & Tubing

• Syringes

•Furniture

•Medical goods

• Closure liner

Compounding Producers:

•Compounds for Wire &

Cable

•Color concentrates & mate

batches

• Carpet back products

• Impact modilisers in the

polymers

Adhesive:

• Hot melt Adhesive

• Lacquers wood finishing

Potential Downstream opportunities …..

17

Polybutylene Terephthalate (PBT)

Automotive

Appliances

Electricals

Medicals

PBT Sectors Product Application End use

Automotive:

•Electric window lift

•Light conducting housing

•Grills

Appliances:

•Exterior parts for deep fryers,

•waffle irons, toasters,

•bread baking machines

•coffee machines

•steam irons and cooker knobs,

•oven handles

Electricals:

•Insulating parts,

•Switches,

•Contactor boxes, connectors

Medicals:

•Dispensing valve parts

•Asthma inhaler parts

Potential Downstream opportunities …..

18

EA/BA

Ethyl Acetate & Butyl Acetate (EA/BA)

Coating

Printing Inks

Cosmetics

Solvents

Pharma-ceuticals

EA/BA Sectors Product Application End use

Coating:

• Solvent, acrylic coating

for wooden furniture,

fixtures, Agricultural

machine

• Automotive refinishing

• Containers & Closures,

Construction & Mining,

Industrial lacquers

Printing Inks:

• Solvent for flexographic

inks

• Gravure Inks

Cosmetics:

• Nail polish remover

• Perfumes

Solvents:

• Extraction Solvent in

food industry

• Solvent for herbicides

Potential Downstream opportunities …..

19

Vinyl Acetate Monomer (VAM)

EA/BA

Paints & Adhesives

Sizing & Coatings

Cosmetics & Toiletries

Films

VAM Sectors Product End use

Paints & Adhesives:

• Water based paints

• Hot melt Adhesives

Sizing & Coatings:

• Paper sizing/coating

• Textile sizing/coating

• Safety glass Coating

• PVC Coatings

Cosmetics & Toiletries:

• Perfumes

Films:

• Packaging Films &

Bags

• Agricultural Film

• Construction Film

• Meat & Poultry wraps

• Thermal lamination film

Application

20

Contact in Sipchem

Business Development

mthattil@sipchem.com

Tel + 966 13 801 9301

Fax + 966 13 801 0291

Marketing:

marketing@sipchem.com

Tel. No. +966 (13) 801 9392

Fax No. +966 (13) 801 9392

21