Industrial Manufacturing Disclosures Completion of Acquisition of Foreign Partner's Share

August 29, 2018

Mr. Abdurrahman Al Ansari, Chief Executive Officer of Qatar Industrial Manufacturing Company declared that the company has completed an acquisition by buying the foreign partner's share in one of the associates, Qatar Plastic Products Company, which has been announced before, and reclassified the investment in the company to a subsidiary company instead of an associate company. The acquisition was financed by a profit – based guarantee and very competitive terms medium term loan from a local bank.

The company’s capital structure after the (33.33%) share acquisition becomes as follows:

Qatar Plastic Products Company was established in 2000 with a capital of Qrs. 27 million which was raised to Qrs. 41.1 million in 2014 to finance the addition of a wooden pallet production with heat treatment facility.

Mr. Al-Ansari added that the transfer has allowed QIMC to have the controlling interest and is within its strategy to improve the return on its investments and increase its profits. The share of the company's profits in 2017 was QR 4.5 million. This share is expected to double by the end of the year as a result of the acquisition.

It should also be noted that there is no debt burden on the company in which the stake is held or any obligations on the Company's shareholders.

Qatar Plastic Product Company is engaged in the manufacture and marketing of plastic products such as plastics, pipes, hoses and plastic bags with special specifications as well as plastic multi-purpose wood. Qatar Petrochemical Company (QAPCO) is the other most important shareholder and commercial partner in the company.