SLIDE #

1
Good Morning to everyone present here. It
gives me a great pleasure to be here making
this presentation on the plaschem parks that
are being implemented in Jubail and Yanbu.
For those of you new to this forum, I am
Mubarak Al-Mubarak, General Manager for
Planning and Investment at the Royal
Commission for Jubail and Yanbu.

SLIDE #

2
All of us recognize that when we go towards
downstream integration, the benefits are the
direct added value to existing chemicals and
a significant socio-economic contribution.
Under the added value to chemicals, value
gets maximized through the derivatives and
conversion products. Under the socioeconomic benefits, skilled employment and
upgradation of skills result.

SLIDE #

Additional manufacturing
capacities at the downstream
level, its infrastructure and
support services and the
associated R&D facilities
generate wealth and
employment as well as make
new products available for
converters.

SLIDE #
4

So, going downstream seems very attractive. But why is

not everyone going for it? What are the challenges?
I am highlighting here the typical issues and challenges
faced when going downstream. First, large companies
and government agencies must extend their support to
small companies. Then, availability of local labor force,
talent and technology could be a challenge. There may

be a difficulty in accessing capital for a smaller firm.

Accessing raw materials and markets would be difficult
since the volumes are low. Availability of appropriate
facilities and infrastructure may be an impediment.
Regulations and ease of doing business could be a
challenge.

SLIDE #
5
5
The best way to tackle these issues is through the
concept of downstream clusters that offer critical
infrastructure and added value services. Standard
offerings could include dedicated infrastructure,
Proximity to the value chain, easy logistics,
investments & financing and superior ease of
doing business. The cluster could also have
additional offering by way of ownership control,
significant demand, skilled workforce, costs
efficiency,
localization,
export
control
and
intellectual property protection.

SLIDE #
6

PlasChem
dedicated

6
is creating industrial clusters
to downstream petrochemicals

and plastic conversion products. It is a

combined initiative of RCJY, industry players
and government bodies. This way, every
stakeholder owns responsibility for the
successful implementation and each one
chips in with their unique contribution.

SLIDE #
7

PlasChem designed to be an ecosystem of a

number of related entities apart from the
manufacturing industries such as the labs,
R&D, logistics, training, master batch
suppliers,
additive
manufacturers,
equipment service providers and so on. Such
an ecosystem type of design brings about
connectivity & integration, allows capturing
of synergies, maximizes strengths, optimizes
economies and increases efficiency.

SLIDE #
8

PlasChem meets investors requirements and is putting

in place structured operating models and competitive
services.
Tenant needs would be met through Attractive location
of land with access to a full range of raw materials,
Comprehensive offering of services and Direct access to
road and rail. Robust operating model would consist of
Basic and advanced infrastructure offering as I
explained before, Dedicated park management and
Quick site allocation and service provisioning. The park
would also enjoy attractive land lease rates, competitive
pricing for utilities and services and the presence of
end-to-end plastics and chemicals value chain.

SLIDE #
9

The Plaschem parks are located in the

industrial cities of Jubail and Yanbu and
would occupy a total of over 1,700 Hectares.
In this map, I have marked the locations in

green. In Jubail, the park would be over

1,200 Ha and in Yanbu it will be 500+ Ha.
These are being developed as Integrated
chemicals derivatives and conversion park
and would be ideally connected to basic
petrochemicals thereby exploiting synergies
(for example from Sadara & Satorp)

SLIDE #
10

10

Listed here are the identified opportunities

in the PlasChem park. These opportunities
are classified into 4 quadrants. These are
attractive and implementable, attractive
but
implementation
challenged,
unattractive
but
implementable,
&
unattractive
and
challenging
implementation. But, this list is quite
dynamic and new products come in and the
quadrants could be shuffled based on the
industry dynamics. Also, these are only
pointers and are not based on complete
feasibility.
SLIDE #
11

11

This shows you a conceptual plot arrangement for

one plot in the Plaschem park.
The park is designed with central services such as
Centralized
maintenance
and
warehousing
services, Staging and storage area and logistics
services including connection to rail, Dedicated
space for steam generation and other shared
utilities as well as Administration buildings,
access control and security, fire brigade and
Facilities Management installations.

SLIDE #
12

12

This shows the park implementation concept

with the gradation of services. The parks will
start with the basic offering that includes
the utilities, security services, right of ways
etc. Then as the park gets populated, the
next level of services could be offered. This
could
include
inspection
services,
consolidation of logistics and similar items.
Then, as the park completely matures, the
time would be ripe for introducing value
added services such as optimization of
energy, integration of product pipe grids etc
that would improve the efficiency and exploit

synergies.

SLIDE #
13

13

Talking about the schedule, Jubail will be

developed first, followed by Yanbu. In Jubail,
plot 13 is being developed in phase 1. Plot
11 and other areas will be developed in the
second phase. Utility intensive industries
will be placed on the south and the
conversion industries will be housed in the
north side.

SLIDE #
14

14

The plaschem was just a concept two years

ago. But today, it is a reality. We have
already allotted space for a number of
downstream industries such as Halliburton,
Baker Hughes, Juffali, BCI and Ravago.
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15

15

As part of the promotional content, We are

developing
profiles
for
the
attractive

opportunities that could be used to market

the parks to prospective investors. I shall
walk you through the profile highlights of
one such opportunity which is the Nonwoven fabrics.
Slides 16 to 20 pending

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21

33

With this, I conclude my presentation.

Thank you for your attention.