Application for Industrial Site Primary Industries

Application for Industrial Site At Rabigh PlusTech Park (RPTP)

Applicant Company: ______

Project Contact Person: ______

Title: ______

Address: ______

______

City: ______

Postal Code: ______

Country: ______

Telephone: ______

Fax: ______

Email: ______

Date of Application: ______

Notice: This application is for an industrial site allocation and is preliminary to a lease at Rabigh Conversion Industrial Park (Rabigh CIP). Information in this application becomes the property of the Rabigh Industrial Park Authority (RIPA), the Park Manager of Rabigh CIP. Information in this application will be used only in consideration of the application’s approval and otherwise will be held in strict confidence. This application will not be returned. The Applicant understands that Rabigh CIP is a managed facility operating on land owned by Saudi Aramco adjacent to PetroRabigh, a joint venture of Saudi Aramco and Sumitomo Chemical (Sponsors). The Sponsors desire certain goals and standards for Rabigh CIP operations and intend to manage the Park’s development rather than offer open leasing. Those goals and standards determine questions on this application, answers to which will lead to approval, conditional approval, or denial by the Sponsors. Within a reasonable time after applying, all Applicants will be notified in writing of the Sponsors’ decisions by RIPA. Reasons for any denial will be clearly stated. Upon approval, a lease and other contracts and documents will be supplied to the prospective tenant. Questions or concerns should be addressed in writing to RIPA using the contact information at the top of this page. Thank you for your application and interest in Rabigh CIP. RIPA form PIA-0706-1

0f5ca0fb298cb49cb04a413a82da5c8b.doc-Oct-09Page 1 of 11 Application for Industrial Site At Rabigh PlusTech Park (RPTP)

—Feasibility Study Option & Ownership

Feasibility Study Option

Please check one of the boxes below:

□ I have attached a reasonably-current (within the last 2 years) feasibility study that answers many of this application’s questions. I will proceed with the application answering only those questions that are not answered in the feasibility study or to which the answers have changed.

□ I have not attached a reasonably-current feasibility study for this project.

Ownership

If the applicant on page one is a subsidiary of another company, please provide details of the parent company in the space below, along with contact information:

If the owner of the plant after its completion and startup will be different than the applicant on page one, please provide details of the new owner in the space below, along with contact information and method of ownership transfer:

If the management and/or operation of the plant after its completion and startup will be different than the applicant on page one, please provide details of the new operator in the space below, with contact information and method of transfer:

Will the plant be a JV with another company? What is the name and address and contact person for that other company? Does it have experience in production and sale of these products?

—Project Information, Part 1/4

Basic Information about the Project

Describe the product or products that the project will produce and their end- use markets: (Please use more sheets if needed)

Annual capacity of your plant: ______units per year; ______tons/year

How was size selected? ______How many “lines” in the plant? ____

Major raw material requirements:

Plastic resins: Tons/year Type Density MFR or MI Other specifications

______

Other raw materials: Quantity/year Description__ Key specifications / needs_

______

Area of Required Site: ______square meters.

Utility requirements: Electricity: ______MW; Processed water____m3/day;

Potable water: ______m3/day; other requirements: ______

0f5ca0fb298cb49cb04a413a82da5c8b.doc-Oct-09Page 3 of 11 Application for Industrial Site At Rabigh PlusTech Park (RPTP) INVESTOR DATA SHEET: Please fill the attached spread sheet considering the phases of your Project.

Services or supplies you will require (briefly list): ______

Expected waste streams:

Type Quantity Plans for use or disposal

______

Technology to be used in the plant:

Provider, primary machinery, if known: ______

Check one: □ New equipment □ Used equipment □ Mix of new & used

Have these products been made before with machines like yours? □Yes □ No

If no, please explain: ______

Is the technology current and competitive? Please explain briefly:______

Is the technology basic or advanced? Please explain briefly: ______

Do you have plans for adding advanced technology over time at Rabigh? What and when and why later, please explain: ______

Project timing:

If approved, is your project likely to be completed within two years of the approval date? □ Yes □ No, when? ______

Project status & manpower needed:

Do you have a capital cost estimate for the project?

□ Yes, approximate amount ______□ No, expected amount ______

Do you have an estimate of your manpower you require for the plant?

Management, professional, & technical ______Existing or new?___

Process technicians, operators, maintenance _____ Existing or new?___

Unskilled labor and other ______Existing or new? ______

Foreign nationals _____ If so, do you have a Saudization plan? ______

Financial Strength for project follow-through:

Describe about your company about items below. Capital of year 2008_____; year 2007____ year 2006____ Revenue of year 2008_____; year 2007____ year 2006____

Profit of year 2008_____; year 2007____ year 2006____ Loans amount of year 2008_____; year 2007____ year 2006____

□ Please attach the financial statement of the previous three years to this application.

Quality plans

Do you plan to seek ISO certification? □ Yes □ No

Do you plan to adopt another QC program? □ Yes □ No, Which?______

Do your products require approvals by customers or government agencies or regulators? □ Yes □ No

If your products require approvals, do you or your JV partner, if any, have those approvals? Please list approvals required and approvals in hand: ______

Do your resin suppliers need to have approvals, also? If so, which resin grade(s) or products require which approvals? ______

Experience

(Not all of these questions need be answered. Please choose the appropriate ones to answer and leave the others blank. Experience at some level is a must.)

Number of years’ experience of your company or parent company in making these specific products, explain: ______

Number of years’ experience of your company or parent company in making similar products, explain: ______

______

Number of years’ experience of your JV partner, if you have one, in making and selling these specific products: ______

Number of years’ experience of your company in manufacturing: ______

—Basic Market Information, Part 1/2

Basic Market Information

Product Price

Please indicate expected ranges of prices for key products:

Price or range Currency per Unit Price per ton equivalent (if diff.)

______per ______

Please describe BRIEFLY the basis for the price expectation (e.g., delivered price average for the last 2 years, forecast XXX per ton above resin prices based on experience in the market, etc.) ______

Sales Volume Expectations

Please provide an estimate of sales and production as % of plant capacity for:

1 st Full Year 2 nd Full Year 3 rd and Subsequent Years Growth potential?

______% ______%______% ______

Sales will be handled by: □ Applicant Company □ JV Partner □ Both

□ Another party (briefly describe): ______

Please provide simple breakdown of expected sales:

______% in the Kingdom of Saudi Arabia (KSA)

______% to other Middle East and North Africa (MENA)

______% to Europe

______% to North America

______% to Asia

If other, please specify ______

—Basic Market Information, Part 2/2

For any exports, are channels already secured? ______Are offtake agreements in place? ______If so, for what % of output? ___%

Describe briefly your plans for securing offtake agreements / sales channels:

Can your products support diversification of new businesses in other areas in the Kingdom? If yes, how soon? Please explain briefly: ______

Competitive Environment

Are these products currently made in KSA? □ Yes □ No

Which companies make these products today, if known: ______

Is the current KSA market □ Oversupplied or □ Undersupplied?

By how many ktons/year or units/year, if known: ______

By the time your project is complete, do you expect the KSA market to be:

□ Oversupplied or □ Undersupplied, and by how much per year? ______

Comments on the competitive environment, focusing on the market need for the products of this proposed plant: ______

—Goals & Commentary, Part 1 of 2

Opportunity to Comment on the Project’s Furtherance of Rabigh CIP Goals

Goals—The Sponsors have five key goals for Rabigh CIP. These are:

1. Further the production of high value-added products. High value- added products are those that either command a high price differential or ratio to resin prices or those that further the introduction of higher technology into the Kingdom—either in the goods themselves or in the end-use industries they supply.

2. Create industry integration in Saudi Arabia. Integration may be upstream, downstream, or horizontal. Upstream integration is back to plastic raw materials and other supplies. Downstream integration is to packaging or production of goods by industries closer to consumers. Horizontal integration is quite important to Rabigh CIP with a plant providing goods to or using goods from other companies in the Rabigh CIP economic area. Integration maximizes efficiency and minimizes waste and cost.

3. Diversify the local economy. Diversification requires support of new businesses, either immediately or in the near future. New products at some level in the supply chain (new materials, new industrial activities enabled) are an important ingredient of economic development.

4. Create skilled jobs and investment opportunities. Rabigh CIP, working with local and national authorities, intends to facilitate appropriate training of local manpower into skilled jobs. For both jobs and investment opportunities, Sponsors intend to favor the private sector for provisions of goods and services for Rabigh CIP.

5. Minimize negative impact on the existing conversion industry in Saudi Arabia. The key objective to reach this goal is to avoid destructive duplication. That objective is different from avoiding all duplication or competition. Projects producing the same products but serving different markets are not viewed as destructive duplication. Just because a product is already produced in Saudi Arabia does not mean that another plant should not be allowed, especially if there are good business reasons for the new plant. Good reasons may include cost-competitiveness of the new plant and un-competitiveness of the existing producer, product differentiation, market differentiation, etc.

—Goals & Commentary, Part 2 of 2

Commentary—Opportunity is provided below or on the attached sheets for the applicant to comment on the proposed project’s adherence to or furtherance of the Sponsors’ goals, as stated above.

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