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Orascom Construction Industries - OCI Expands Steel Fabrication

Posted on: Tuesday, 26 February 2008, 12:00 CST

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."

 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 

SOURCE: Orascom Construction Industries

Source: MARKET WIRE

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