ADVANCED PETROCHEMICAL COMPANY (“ADVANCED”) ANNOUNCES THE SIGNING OF MEMORANDUM OF UNDERSTANDING WITH SK GAS CO. LTD. FOR THE DEVELOPMENT OF POLYPROPYLENE COMPOUNDING UNIT IN THE KINGDOM OF SAUDI ARABIA

Element List	Explanation
Introduction	Advanced Petrochemical Company (ADVANCED) is pleased to announce the signing of Memorandum of Understanding (“MOU”) between Advanced Global Investment Company (“AGIC”), a subsidiary of ADVANCED, and SK Gas Co. Ltd, an affiliate of SK Group, South Korea, for the development of a Polypropylene Compounding (to produce PP Compounds) Unit (the “Project”) in Jubail Industrial City in the Kingdom of Saudi Arabia.
Signing date of the memorandum	2019-06-26 Corresponding to 1440-10-23
Signed party	1. Advanced Global Investment Company

2. SK Gas Co. Ltd. Memorandum Subject Signing of MOU for the development of Polypropylene Compounding Unit in Saudi Arabia Memorandum Duration 2 years from the date of signing of this MOU or until the parties have executed the definitive agreements, whichever is earlier. Related Parties 1. Advanced Global Investment Company Financial Impact ADVANCED will continue to announce any material developments including financial impact regarding the proposed Project in accordance with the relevant laws and regulations. Additional Information The total cost of the Project is currently estimated at US$ 40 million (SR 150 million) to produce PP Compounds with capacity of 100,000 tons per annum to cover wide range of applications including automotive sector.

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