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Southern African Supply Status: C2 Value Chain PVC Supply | July – December 2023

Dear Customer,

Last week, our VCM and PVC units were taken offline as a result of operational concerns on one of the VCM reactors. Our Operations team is currently assessing the unit, and at this time we expect to lose further production time prior to the scheduled statutory maintenance shutdown, commencing on 10th August 2023. Our current inventory position has been impacted by the planned strong sales offers made to the market during June 2023 in the run up to Sasol’s financial year end. Given this unplanned plant outage, our PVC volume offers to customers over the period July to December will be impacted as follows:

July 2023: The balance of July customer forecasts will be covered, though some tightness on specific packsizes and intercodes may be encountered and alternative packsizes will be offered to fulfil these outstanding forecasts.

August 2023: Sasol is unable to cover the full customer forecasts and product allocations will thus be made to customers based on the current stock position available. Allocations for S6721 and S7106 will be made accordingly as per the respective stock levels available per grade. Packsize and intercode restrictions will apply and customers will be offered alternative packsizes where applicable.

September 2023: Sasol will not make any PVC volume offers to customers, nor take any orders for the month of September as inventory coverage will be depleted through the August allocations. The plant will remain offline during September for the statutory shutdown.

October 2023: Customer allocations and packsize/intercode restrictions will remain in force during October, and these will be dependent on the safe and timeous start-up of the plant and sustainable throughputs and output of in-specification product being achieved. Customers are advised to supplement their October supply requirements through alternative sources as allocations are likely to remain strongly impacted during October as inventory levels are be-built.

Polifin Limited

November / December 2023: Sasol expects normal production outputs and plant stability through October and thus no allowance for market allocations is expected from November onwards.

Your Base Chemicals (Polymers) Account Manager will provide further details as to the revised grade packsize and volume allocations for August, in order for customers to plan for their overall supply arrangements over this period.

All forecasts and planned allocations are subject to actual production taking place as planned and apply only to the month in question. No rolling of untaken allocation volumes into future months, or bringing allocation volumes forward will be allowed from month to month should Sasol not be able to execute on these.

Customers are reminded that supply forecasts and allocations, like customer demand forecasts, are planning tools used to provide some guidance to both Sasol and its customers. However, the actual ‘contract of sale’ as per the General Terms and Conditions of Sale (“GTOS”) as signed by both parties arises once Sasol has confirmed delivery against accepted orders placed by customers.

We will continue to provide customers with updates to this situation as information becomes available from our Operations team.

Thank you for your understanding and cooperation.

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