PETROCHEMICAL INDUSTRIES COMPANY

PICKUWAITONLINE

PIC_KW

COMUNICATION PIC

WWW.PIC.COM.KW

CONTENTS

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Brief History

PIC Vision

PIC Mission

K-Values

PIC Products

Product Quality

PIC Investments

Chief Executive Officers (CEOs)

PIC Profit During Previous Years1

Brief History

PIC was established in 1963. It is currently a subsidiary of Kuwait Petroleum

Corporation (KPC), a governmental umbrella organization for Oil Sector Companies,

headquartered in Kuwait City. PIC’s authorized capital is KD 600 million.

In 1967, the first Kuwaiti fertilizer industry complex was established in Shuaiba

Industrial Area. Thereafter, it was expanded and Modernized to increase its production

capacity and product mix.

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PIC invested in establishing Gulf Petrochemical Industries Company (GPIC) in 1979.

GPIC is a joint venture of National Oil and Gas Holding Company from the Kingdom

of Bahrain, SABIC Company from Saudi Arabia and PIC in equal partnership. GPIC

complex started production in 1985.

PIC signed a Memorandum of Understanding (MoU) with “Union Carbide Corporation

(UCC)” for building a Petrochemical complex in Shuaiba Industrial Area, in 1993. A

Joint Venture named “EQUATE Petrochemical Company (EQUATE) was established

with PIC, UCC & Bubyan Petrochemical Company. Production in the Olefins Complex

thus established began late in 1997. UCC was acquired by DOW Chemical in 2001.

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In 1993 PIC Constructed a Polypropylene Plant within Shuaiba Industrial Area under licence

from UCC. Production started in 1997.

In 2004 PIC entered into a Joint Ventures and established the following companies in Kuwait:

The Kuwait Olefins Company (TKOC) between PIC (42.5%), The Dow Chemical Company

(TDCC) (42.5%) with local private participation of Bubyan Petrochemical Company (9%)

and Qurain Petrochemical Industries Company (6%) for producing Ethylene Glycol. TKOC

began production in late 2008.

The Kuwait Aromatics Company (TKAC) Between PIC (40%), Kuwait National Petroleum

Company (40%) and Qurain Petrochemical Industries Company (20%) for producing

Paraxylene and Styrene. Production began in early 2009. PIC divested 20% shares to KNPC

in 2018 reducing its holding to 20% and increasing that of KNPC to 60%.

In 2004, PIC acquired Interests in The Dow Chemical Company’s plants in Canada and Germany

and established joint ventures named MEGlobal and Equipolymers for producing Ethylene

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Glycol and PET respectively with equal shares. Equipolymers was later merged into MEGlobal

and MEGlobal was subsequently sold to EQUATE in 2017.

In 2016, PIC acquired 25% interest in SK Advanced Company existing plants in South Korea

through a joint venture agreement with Korean SK Gas and Saudi AGIC for producing

Propylene. The Propylene plant was inaugurated on 14th May 2016.

In 2017, PIC entered Joint Venture Agreements with Pembina Pipeline Corporation (Pembina)

a Calgary, Canada based company for building a Polypropylene plant in the province of

Alberta, Canada.

In 2018, the company exited the fertilizer business and closed down its Fertilizer Plant in

Shuaiba Industrial Area in line with KPC’s 2030 Strategy.

In 2019, PIC signed an agreement to acquire 49% of the chemicals business of the SK Chemicals

“SKC”, Korea. The agreement stipulates establishing a joint venture company between the

two parties in Propylene Oxide and Propylene Glycol Business segment.

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PIC Vision

To be a global petrochemical company committed to

adding value to Kuwait’s national resources.

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PIC Mission

As the leading petrochemical arm of Kuwait, PIC develops, operates

and optimizes assets to market products that meet customer needs

through:

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K-Values

الفري�ق الواحد اإلبت�كاراإلستقامة

التمّيز االهتمام بالعنصرالشراكةالبشري

االلتزام بالصحةوالسالمة واألمن

والبيئة

اإلعتزاز

ONE TEAMINTEGRITY INNOVATION

EXCELLENCEPARTNERSHIP CARING FORPEOPLE

COMMITMENTTO HSSE

PRIDE

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1. Liquid Ammonia.

2. Granular Urea.

3. Methanol.

4. Polypropylene.

5. Polyethylene.

6. Propylene.

7. Benzene.

8. Paraxylene.

9. Polyethylene Terephthalate (PET).

10. Ethylene Glycol.

11. Styrene.

PIC Products

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PIC seeks to provide different solutions and high quality products according to

international standards for the safety of consumers and environment.

Product Quality

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The Company Investments

Equate Petrochemical Company

EQUATE Petrochemical Company was established in 1995.

Products: It annually produces 800,000 tons of Ethylene which is used to produce 825,000 tons of Polyethylene and 500,000 tons of Ethylene Glycol annually.

Location: Shuaiba Industrial Area- State of Kuwait.

It also operates PIC’s Polypropylene unit.

With the acquisition of MEGlobal in 2017 EQUATE became a Key Global Player in production and marketing of petrochemicals.

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The Kuwait Olefins Company (TKOC)

TKOC was established in 2004.

The company products: 850,000 tons of Ethylene and 600,000 tons of Ethylene Glycol annually.

Location: Shuaiba Industrial Area- State of Kuwait.

Qurain Petrochemical Industries Company (QPIC)

QPIC was established in 2004. It is a shareholding company with shares listed in Kuwait Stock Exchange. PIC holds 10% share. QPIC has shares in each of the following companies:

• 6% in Equate Petrochemical Company.

• 6% in The Kuwait Olefins Company (TKOC).

• 20% in The Kuwait Aromatics Company (TKAC).

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The Kuwait Aromatics Company (TKAC)

TKAC was established in 2004. PIC owns 20% in TKAC, KNPC 60% and the Kuwait private sector represented by Qurain Petrochemical Industries Company 20%.

The company owns shares of:

The Kuwait Styrene Company (TKSC)

TKAC (57.5%) and TDCC (42.5%)

Production volume: 450,000 tons of styrene monomer annually.

Location: Shuaiba Industrial Area- State of Kuwait.

Kuwait Paraxylene Production Company (KPPC)

Fully owned by TKAC.

Products: 780,000 tons of Paraxylene and 370,000 tons of benzene annually.

By-products: heavy aromatics, light naphtha, liquid butane gas, hydrogen gas (11,430 tons annually).

Location: Shuaiba Industrial Area- State of Kuwait.

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Gulf Petrochemical Industries Company (GPIC) (B.S.C) - Kingdom of Bahrain

The company was established on 5th December 1979 as a joint venture between each of the Kingdom of Bahrain, the State of Kuwait and the Kingdom of Saudi Arabia with a share of 33.33% each.

SK-Advanced Company

It is a joint venture between Korean SK Gas 45% and Saudi AGIC 30% and PIC 25%. It’s producing 600,000 tons of Propylene. The Propylene plant was inaugurated on 14th May 2016.

Feed Stock supplied principally from KPC.

Kuwait-Vietnam Petrochemical Company (KVPK)

The company was established on 22nd December 2017 to market petrochemical products in Vietnam and South East Asia. The company is fully owned by PIC and is currently marketing Polypropylene from NSRP Plant, a strategic joint venture between the State of Kuwait, Japan and Vietnam.

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PIC is KPC Strategic Arm in Petrochemical Products

PIC has expertise and ability in petrochemical marketing, being a leading

International producer and marketer of fertilizer and petrochemicals for over half

a century. In line with KPC strategic directions for 2040, PIC will be responsible for

marketing all petrochemicals produced by KPC subsidiaries and joint ventures in

order to maximize the value of Kuwaiti hydrocarbons.

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PIC’s strategy includes expansion in petrochemicals inside and outside Kuwait to

maintain its leading position in the sector by strengthening its relations with current

customers in its traditional markets and endeavouring to attract new customers

in emerging markets, e.g. North America and other markets through long-term

contracts to retain and expand its market share, avoid regional competition and

actively look for investment opportunities in the petrochemical industry.

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Ibrahim Mohammad Al-Shatti : 1963 - 1971

Abdul Baqi Al-Nouri : 1971 - 1990

Hani Abdul Aziz Hussein : 1990 - 1995

Khaled Saleh Bou Hamra : 1995 - 2001

Saad Ali Al-Shuwayeb : 2001 - 2007

Maha Mulla Hussein : 2007 - 2013

Asaad Al-Saad : 2013 - 2016

Mohammad Al-Farhood : 2016 - 2019

Mutlaq Al-A’zmi : 2019

Chief Executive Officers (CEOs)

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The Company Profits During the Previous Years

2018 - 2019 : KD 192 million

2017 - 2018 : KD 131 million

2016 - 2017 : KD 130 million

2015 - 2016 : KD 431 million

2014 - 2015 : KD 179 million

2013 - 2014 : KD 353 million

2012 - 2013 : KD 231 million

2011 - 2012 : KD 260 million

2010 - 2011 : KD 177 million

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