For additional information CONTACT: OCI Investor Relations Department: Hassan H. Badrawi Email: hassan.badrawi@orascomci.com Omar Darwazah Email: omar.darwazah@orascomci.com Ahmed Sultan Email: ahmed.sultan@orascomci.com Tel: +202 2461 1039/1036/0727/0914 Fax: +202 2461 9409 For additional information on OCI: www.orascomci.com Orascom Construction Industries (OCI) Nile City Towers - South Tower 2005A Corniche El Nil, Cairo, Egypt OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD This information is provided by RNS The company news service from the London Stock Exchange
Orascom Construction Industries - OCI Expands Steel Fabrication
| Source: Orascom Construction Industries
Cairo--(Marketwire - February 26, 2008) -
NEWS RELEASE
OCI Doubles Steel Fabrication Capacity
Cairo, Egypt - 26 February 2008: Orascom Construction Industries (OCI)
announced today that it plans to expand its investments in the industrial zone
in Ain Sokhna through its wholly owned subsidiary National Steel Fabrication ("
NSF"). Approximately EGP 450 million in capital expenditure has been earmarked
for the construction of a new state-of-the-art steel fabrication plant to be
commissioned during 2008.
The capital expenditure will be used to finance a new steel fabrication plant
with an annual production capacity of 80,000 tonnes. The new yard will be built
on a total area of 500,000 m2 in Ain Sokhna in the industrial park that is
managed on a concession basis by OCI subsidiary Suez Industrial Development
Company (SIDC). It is expected that the new plant will create approximately
3,000 new jobs.
The new plant raises OCI's annual steel fabrication capacity to approximately
120,000 tonnes which includes the already existing plants in the 6th of October
industrial park and Algeria. Steel fabrication is a vital component in the
construction of industrial projects especially in the oil and gas and power
sectors as well as in infrastructure works.
NSF has also completed the acquisition of IBSF (formerly known as Nasr Boiler &
Pressure Vessels Company) which specializes in the design and manufacture of all
types of boilers, pressure vessels, condensers and heat exchangers which serve
as integral components in power plants and various industrial projects. In
addition to the design and manufacture of the aforementioned products, IBSF also
offers engineering, procurement, installation and startup services. The
acquisition was completed at total enterprise value of EGP 75 million (US$ 13.6
million).
NSF's list of international clients includes Vinci Energies, Alstom, Siemens,
Thyssenkrupp Uhde, Polysius, Kellog Brown & Root, F.L.Smidth and Mitsubishi
Heavy Industries. NSF currently provides steel fabrication services to clients
in Egypt, Algeria, the United Arab Emirates, Saudi Arabia, Northern Iraq,
Nigeria, Spain, the UK and Germany.
OCI Chief Executive Officer, Nassef Sawiris commented, "our steel fabrication
plants provide a competitive edge for our Construction Group in the execution of
turn-key industrial and infrastructure projects across the region, especially in
power, oil & gas and large-scale infrastructure."