Jam Petrochemical's clarification notice regarding the ownership and management of the HDPE production unit

In reply to the recent announcement by Persian Gulf Petrochemical Industries Company, the following is brought to the attention of stakeholders, shareholders and the country's industrial community at large:

1. Further to the statutory disclosures made by Jam Petrochemical Company on the Codal system on 30/04/1405, the appointment of Mr Habibollah Dibachi as “executive manager and officer responsible for the conduct of affairs of the high-density polyethylene unit” (formerly known as Mehr Petrochemical) is not an act of interference but a step towards establishing Jam Petrochemical's managerial authority over assets acquired under judicial rulings. It is self-evident that, on settled legal principles, the acquisition of an asset requires direct and immediate management of that asset in order to preserve it and make the best use of it.

1. Jam Petrochemical emphasises that its focus is on the operational running of the plant and production equipment and on returning them to production. In this company's view, the unit in question is an asset under its ownership, the process of changing its identity and branding has begun, and Jam's management — setting aside the disputes surrounding the former legal entity — is taking decisions about running an asset that belongs to it.

1. The claim that the board's powers are unchanged does not negate Jam Petrochemical Company's legal right to take charge of and conduct the affairs of a unit whose ownership has formally been transferred to it. Jam Petrochemical considers itself bound to give full effect to judicial rulings, and the appointment of the executive manager was made precisely on that basis and in order to prevent any interruption to production.

1. While inviting all parties to observe professional ethics and to refrain from media manoeuvring, which only prevents this unit from returning to production and harms shareholders' rights, Jam Petrochemical announces that this production unit will shortly begin formal operation under Jam Petrochemical, with a new structure, identity and management. All subsequent measures will likewise be pursued within the law and in order to secure the interests of the esteemed shareholders.

1. In closing, it would be fitting for those in charge of that organisation to direct their main attention, rather than spending their energy drafting press announcements, to protecting the interests and rightful claims of the retirees and the true stakeholders of this industry. Creating controversy and unnecessary confrontation while the law is being given effect does nothing to improve the livelihoods of these people; it merely wastes time and resources that belong to them. Jam Petrochemical has made the continuity of production and the creation of value for its shareholders and for its esteemed retirees its priority, and we hope that the other party will likewise adopt a more responsible approach to the real concerns of this hard-working group, rather than deflecting.

Public Relations Office, Jam Petrochemical Company