Further to the previous statement published in Tadawul website on 22 December 2009, Sahara Petrochemicals Company announced that the agreement to start an engineering and preliminary construction works (Early Work Agreement) has been signed on Wednesday, 03 March 2010 between Sahara Petrochemical Company and Saudi Arabian Mining Company (Ma’aden) from a side and Daelim from the other, to initiate the caustic soda and ethylene dichloride project that will be constructed in Sahara PCC complex in Jubail Industrial City.

The first phase is expected to cost SR154 million covering the first nine months and will be followed by the signing of the engineering contract, supply and construction (EPC.

Engineer Esam Fouad Himdy, Managing Director of Sahara announced that caustic soda and ethylene dichloride is a 50-50 joint-venture between Sahara PCC and Saudi Arabian Mining Company (Ma’aden) using German UHDE technology.  The construction of the project will be completed in the third quarter of 2012.

Engineer Saleh Bin Mohammed Bahamdan, Executive President of Sahara PCC also said: production capacity of the project will be 250K tons of high grade sodium hydroxide and 300K tons of ethylene dichloride per year.  The project will provide approximately 200 job opportunities but will increase accordingly with the gradual expansion of the company's projects.

For more information about the project, please see the prospectus of right issue of Sahara Petrochemical Company which is available on the Sahara PCC website and financial market website.

Regards
Public Relations Department