RIYADH, Saudi Arabia (February 15, 2000) - IBN RUSHD (Arabian Industrial Fibers Company), a Yanbu-based affiliate of the Saudi Basic Industries Corporation (SABIC), is starting up its Aromatics (benzene and xylenes) and PTA (Purified Terephthalic Acid) plants, completing the "back integration" of its polyester-manufacturing complex.

This was announced by SABIC's Vice Chairman and Managing Director Mohamed H.Al-Mady today in Riyadh. The announcement coincided with a meeting involving SABIC, IBN RUSHD and representatives of banks and financial institutions. Dr. Abdullah Abdulkader, Chairman of IBN RUSHD's Board of Directors, Abdullah S. Nojaidi, SABIC Executive Vice President, Planning and Investment, and several other SABIC officials attended the meeting.

AI-Mady said the startup of the 730,000 metric tons per year (Mt/y) Aromatics plant and the 350,000 Mt/y PTA facility enables IBN RUSHD to benefit from back integration by meeting its raw material requirements.

Al-Mady described IBN RUSHD as a strategically important link in SABIC's investments in the petrochemical industry. "It marked the beginning of a new polyester industry in Saudi Arabia, and holds strong growth potential considering the domestic and regional market requirements," he added.

The meeting with the bankers was convened to discuss a rescheduling of IBN RUSHD's US $850 million credit facilities, raised in 1997 to support the construction of the two plants. Following the full subscription of an SR 550 million (about US $ 147 million) capital increase by shareholders recently, the company is now seeking to reschedule the terms of the credit facilities.

At the meeting, the banking consortium was provided with a comprehensive review of the technical, commercial and financial aspects of IBN RUSHD. The global petrochemical downturn of the last two years had affected the company's product margins, bringing returns down to lower than expected levels. However, the market situation has been improving and the outlook for IBN RUSHD is more positive now.

Nojaidi and Dr. Abdulkader thanked the bankers and financial institutions for reaffirming their confidence in SABIC's business strategies and financial strength. A total of 29 Saudi, regional and international financial institutions attended today's meeting, along with representatives of the company's financial adviser, Chase Manhattan Bank.

IBN RUSHD's 140,000 metric tons per year (mt/y) polyester plant came on stream in 1995, producing textile fibers and yarn, carpet fibers and PET (polyethylene terephthalate) bottle grade resin. In 1996, the company launched the initiative to build Aromatics and PTA plants to back-integrate the complex. One of the Aromatics products (Paraxylene) is the vital feedstock that goes into the production of PTA. PTA and Ethylene Glycol are the two main raw materials used to produce polyesters. IBN RUSHD sources its Ethylene Glycol requirement from neighboring SABIC affiliate, YANPET (Saudi Yanbu Petrochemical Company).

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Abdulmohsen Al-Obaid
Acting GM, Public Relations

© Press Release 2005