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Advanced and Bayegan Group Signs Memorandum

Advanced Petrochemical Company (Advanced) and Bayegan Group (Bayegan) had signed a Memorandum of Understanding for the development of a joint US$ 1 billion Propane Dehydrogenation (PDH) and Polypropylene (PP) plant in Southern Turkey. The MOU will be effective from the signing date and continue until 31st December 2012 or execution of the Joint Venture Agreement, whichever is earlier.
Advanced and Bayegan Group Signs Memorandum
The project, in which Advanced will hold a 70% equity stake and Bayegan Group 30%, is comprised of construction of a state-of-the-art PDH-PP Plant, all other required utilities and port facilities. The financing of the Project will be 70% through third party financing and 30% by equity contribution of the parties. Once fully operational, the plant is expected to produce approximately 500,000 tons of polypropylene per year.

Construction of the project is expected to commence 2nd quarter of 2013 with completion targeted for fourth quarter of 2015. The Project will have positive financial impact on the Company and its shareholders.Any additional information will be announced later.

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