FILLING & PACKING MATERIAL. MFG. CO. (FIPCO) ANNOUNCES THE COMMERCIAL START-UP FOR ITS SUBSIDIARY (FPC INDUSTRIES CO.)

Element List	Explanation
Introduction	Further to FIPCO respective announcements on the website of the Saudi Stock Exchange (Tadawul) since Jan.31, 2017, related to the project of its subsidiary (FPC Industries Co.), aiming to produce the coated Technical Fabrics (CTF), further reference to the last announcement dated Dec. 13, 2018, by which FIPCO indicated that the trial operation reached the final stages and running gradually based on the requirements of operation to cope up with the desired quality standards

Element List

Explanation

Introduction

Further to FIPCO respective announcements on the website of the Saudi Stock Exchange (Tadawul) since Jan.31, 2017, related to the project of its subsidiary (FPC Industries Co.), aiming to produce the coated Technical Fabrics (CTF), further reference to the last announcement dated Dec. 13, 2018, by which FIPCO indicated that the trial operation reached the final stages and running gradually based on the requirements of operation to cope up with the desired quality standards

(FIPCO), is pleased to inform its shareholders about the latest developments of the project as follows: Date of posting the previous announcement on Tadawul’s website 2018-12-13 Corresponding to 1440-04-06 Change Details on development FIPCO is pleased to announce the commercial start-up of FPC project as of Sunday 31 March 2019 following successful testing of machines and production lines, validation of all operational and non-operational aspects and successful testing of plant equipment.

FIPCO continues its commercial production process gradually according to the operating requirements and in accordance with the desired quality standards, taking into account the operating ratios will gradually increase in line with the local and international market situations and fluctuations. Financial Impact on the change FIPCO expects that commercial start-up will positively affect the company's financial results starting from the second quarter of FY2019, making it difficult to determine the financial impact for the time being, due to supply and demand circumstances. Additional Information - FPC Industries Co. has the latest European technology of machinery and equipment designed to produce the multi-purpose products. Furthermore, It has a multi-skilled team of experts in this field from various countries to meet the customers’ needs.

-It is worth to mention that, these products can be used in the manufacture of tents, umbrellas, curtains, isolators, handrails, billboards, truck covers, tarpaulins, technical textiles for roofs architectures, stadiums and commercial malls, as well as it is served for the construction and contracting sectors.

- FPC has participated in 8 international exhibitions and trade shows worldwide since the establishment up to the moment in order to expand the customer base at the international level and start the process of promotion at a high level commensurate with the high quality products to achieve the global target spread.

FPC aims to export at least 60% of their products.

- FPC has obtained more than 30 certificates to conform its products to the standards and approvals, in addition to the standard quality levels adopted locally and internationally.

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