Cairo--(Marketwire - June 25, 2007) -
NEWS RELEASE
Sorfert Algerie Signs Agreement with Uhde
Sorfert Algerie signs agreement to design, develop and construct a world class
fertilizer complex near the Mediterranean coast in Algeria
Cairo, Egypt - 25 June 2007: Orascom Construction Industries ("OCI") has
announced that Sorfert Algerie ("Sorfert"), a joint venture between OCI and the
Algerian state-owned oil & gas company Sonatrach, has signed an Agreement with
Uhde GmbH ("Uhde") to design, develop, and construct a world class fertilizer
complex which will be located in the industrial zone of Arzew near three major
Algerian ports on the Mediterranean coast for a total value of EUR 1.17 billion
+ US$ 160 million. The complex will consist of an ammonia/urea production unit
of 1.1 million tonnes per year and a second ammonia production unit with a
capacity of 0.77 million tonnes per year. The first unit is expected to start
operations end 2010, and the second unit will start operations six months later.
OCI Algeria, OCI's Construction Group subsidiary and one of Algeria's largest
construction contractors, is expected to perform all onshore works on the new
complex. OCI has significant track record in the construction of fertilizer
plants having provided construction services on four fertilizer plants in Egypt.
Uhde is a company in the technology segment of the ThyssenKrupp Group. With more
than 25 years of experience in the field of urea production technology and a
solid global track record, Uhde is a world leader in the field.
Sorfert was incorporated in early 2007 as a joint venture between OCI (51%) and
Sonatrach (49%) to construct and operate state-of-the-art greenfield fertilizer
complex.
Sonatrach is the national oil and gas company of Algeria. Wholly owned by the
Government, Sonatrach is the largest contributor to Algeria's gross domestic
product (GDP). Sonatrach is the largest oil & gas company in Africa, the world's
second largest exporter of liquefied natural gas and the world's third largest
exporter of natural gas.
OCI Chief Executive Officer, Nassef Sawiris commented "we are extremely proud of
our partnership with Sonatrach and its management team. The project is now on
track to be Algeria's largest fertilizer producer and geared to be a major
exporter on the Mediterranean."
OCI aims to invest in greenfield industrial projects which leverage
competitively priced natural gas in the region and which utilize our
Construction Group capabilities to reduce the time and cost of development. OCI
intends to actively pursue investment opportunities in urea and ammonia
fertilizer plants in the region as both a contractor and an equity investor. In
addition to its investment in Sorfert, OCI is the largest shareholder in
Egyptian Basic Industries Corporation ("EBIC"), which is currently constructing
a state-of-the-art ammonia plant in Egypt with a production capacity of 0.7
million tons per year. The EBIC plant is scheduled to start operations in mid
2008.
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For additional information CONTACT:
Investor Relations Department:
Hassan H. Badrawi
Email: hassan.badrawi@orascomci.com
Omar Darwazah
Email: omar.darwazah@orascomci.com
Tel: +202 2461 1039/1036
Fax: +202 2461 9409
Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets. Based in Cairo, we employ
more than 40,000 people in over 20 countries. Working together with our
employees, business partners and customers, we are helping to build the future
in developing countries around the world.
As a cement producer, we own and operate cement plants in Egypt, Algeria,
Turkey, Pakistan, northern Iraq, and Spain which have a combined annual
production capacity approaching 21 million tonnes. Our new investments in
northern Iraq, Turkey, Nigeria, Algeria, the United Arab Emirates, Saudi Arabia
and Syria will increase our annual production capacity to 39 million tonnes. Our
Cement Group exports from Egypt and Algeria to customers in more than 30
countries including the USA, Europe, Africa and the Middle East. We produce and
distribute aggregates and ready-mix concrete in Spain, Egypt and Algeria. We
also manufacture cement bags in Egypt and Algeria.
As a contractor, we provide engineering procurement and construction services on
large, complex and demanding industrial, commercial, water/sewage,
transportation, telecommunications, maritime, tourism and railway projects for
private and public customers principally in the Middle East, Africa and Central
Asia. Our Construction Group is active in over 100 projects in more than 20
countries. Through partnerships with industry leaders, we also manufacture
fabricated steel products as well as architectural curtain walling and window
systems. As part of our long-term strategy to create a sustainable flow of
construction opportunities, we also have investments in natural gas industries,
including fertilizers and in infrastructure concessions including a port
operator and an industrial park developer.
For additional information on OCI: www.orascomci.com
Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 2461 1111, Fax: +202 2461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI
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