Further to the previous announcement which was published on Tadawul on October 20th, 2015G regarding the latest developments for the Butanol plant, The National Industrialization Company (Tasnee) announces that the project has completed all the necessary tests to ensure the efficiency of production in accordance with the technology license and EPC contracts for the start of commercial operations which according to the Saudi Butanol Company board of directors meeting held on March 28th, 2016G was determined to have begun on March 1st, 2016G. The financial impact of the project has been evaluated for The Saudi Acrylic Acid Company (SAAC) using current prevailing market prices, and it is estimated that the project will lower SAAC production costs by approximately SAR 40 million in 2016 beginning in the first quarter. Note that Tasnee owns 52.3% of SAAC.The Butanol project is equally owned by The Saudi Acrylic Acid Company (SAAC), Sadara Chemicals Company and Saudi Kayan Petrochemicals Company and will produce of 330,000 metric tons per annum of n-butanol and 11,000 metric tons per annum of iso-butanol with the production being distributed to the partners in accordance with the tolling and processing agreement entered into between them.
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