FACTS & FIGURES - Tecnimont ICB

Statement by Pal Theie, Vice-President, Projects &
Technical Support, Borealis
“Today Maire Tecnimont is among our most important contractors, engaged
with the construction of our new LDPE plant in Sweden and our three new
Borstar plants in Borouge 2, the expansion of our joint venture in Abu Dhabi.
Maire Tecnimont thereby continues to expand the high number of polyolefins
plants realized by utilizing our advanced technologies worldwide, in UAE,
Austria, Belgium, Finland, Sweden and China. The LD5 plant in Sweden will
be the world’s largest plant for producing polyethylene resin for the Wire &
Cable industry, and is the largest polyolefins project in Europe to date.
The decision of contracting Maire Tecnimont the multi billion petrochemical
project Borouge 2 in Abu Dhabi - UAE has strengthened our business
relationships based on a long-lasting contractor-client loyalty. Our relationship
dates back to 1962, based on a strong collaboration with the then engineering
centre of Montecatini, reputed for its high capabilities thanks to the heritage
left by Professor Giulio Natta, Nobel prize winner in 1954. Borouge 2 is the
most important project to date using our advanced technology "Borstar". The
Borstar technology - state-of-the-art multi modal proprietary technology for
PE and PP - is the core ingredient of Borealis and Borouge value creation
through innovation strategy in Europe and Middle East. With Borouge 2, we
intend to satisfy the boosting demand of polyolefins products in the world."
Growing Opportunities in Egypt
Egypt and its 80 million people represent a promising internal market, growing at annual rate of
3-4%. Leveraging on the country’s large gas reserves, the Ministry of Petroleum is pursuing a 15-year
development plan aiming at increasing petrochemical production from the current 1.5 million
tonnes/year to 15 million tonnes/year, with a total investment of about ¤20 billion. The plan will be
implemented through Egas, EGPC and ECHEM, the government holding companies for natural gas, oil
and petrochemicals.
In February 2008, Tecnimont signed an agreement with the Egyptian Petrochemicals Holding
Company (ECHEM) to form a new company incorporated in Egypt to provide engineering and
management services for the construction of industrial plants in Egypt and neighbouring countries.
The new company is jointly owned by Tecnimont, ECHEM and the Egyptian Petroleum Projects &
Technical Consultation Co. (PETROJET).
Later in the year Tecnimont signed a further contract with Egypt’s state-owned Engineering for the
Petroleum & Process Industries (Enppi) to provide PMC (Project Management Contractor) services for
a 200,000 tonnes/year polystyrene plant at Alexandria. The services will be provided on a reimbursable
basis. These initiatives are part of a wider effort to strengthen the Group’s presence in North Africa in
the oil, gas and petrochemical industries.
Long-Standing Presence in the Russian Federation
Maire Tecnimont has been present in Russia and countries of the former Soviet Union for more than
70 years. The cooperation dates back to the 1930s, when Montecatini was active in technology transfer
and fertilizer plant construction. The first permanent representative office was opened in Moscow at
the beginning of the 1960s. Since then, the Group has supplied plants for basic chemicals,
intermediates, and fine chemicals and in recent decades has also been active in petrochemicals,
power and infrastructure.
To date, the Group has completed 50 projects worth about US$2 billion in the former Soviet Union. In
2007 it founded a subsidiary in Moscow to provide engineering services for this market and is currently
building five plants, worth about ¤700 million, in various parts of the Russian Federation - Tatarstan,
Bashkiria, western Siberia and the Arctic region. Clients include national oil ministries, public utilities
and private investors. We believe there is great potential in the Russian market because of its large
energy reserves and the need to make local plants compliant with European Union regulations.
Europe: Engineering Capabilities and Selected Projects
Investment in chemicals and petrochemicals is increasingly turning away from
the mature markets of Europe and North America towards hydrocarbon-rich
emerging countries. However, Europe still has a strategic role in the
development of selected projects, partly as a result of its excellent historical
tradition in E&C services. Maire Tecnimont’s European engineering centres
represent a major portion of its international E&C network, and provide
multi-disciplinary services to all its business units, especially in chemicals and
petrochemicals. Maire Tecnimont is currently working on several projects for
prominent clients in central Europe, both in the traditional petrochemicals
sector and in new chemical technologies linked to green energy production.
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