• Home
• /
• Business

OMV to set up $160m plant in Ruwais

ABU DHABI — OMV, Central Europe's leading oil and gas group in which the Abu Dhabi based International Petroleum Investment Company (IPIC) has a key stake, said it would soon finalise the setting up of $160 million melamine production plant in Ruwais.

The move follows a strategic repositioning of OMV's chemicals subsidiary AMI Agrolinz Melamine International GmbH (AMI) headquartered in Linz, Austria, IPIC, one of OMV's key stockholders, is acquiring a 50 per cent stake in AMI, which includes all of AMI's subsidiaries.

The sales revenue pre tax is EUR 95.7 million, considering 50 per cent of the net debt the price amounts to EUR 241 mn. The contracts were signed on April 30, 2005. OMV and IPIC will each now have a 50 per cent interest in AMI. The closing of this transaction is expected to take place in the second half of 2005. This step will provide AMI with a stronger base for continued, independent growth in international markets.

"Now that IPIC has come on board, a decision regarding our fourth melamine production site is due to be finalised soon. By the end of 2008 a new melamine plant with a capacity of around 80,000 tonnes per year, representing an investment of approximately 160 million, is planned in the strategically well situated Ruwais in Abu Dhabi," said Joachim Grill, CEO AMI group. AMI and the Abu Dhabi National Oil Company (ADNOC) will form a joint venture to build the plant. It is intended, that AMI will hold 40 per cent and ADNOC 60 per cent. For marketing activities it is planned to establish a company owned 50/50 by the partners.

Mohamed Al-Khaily, Managing Director of IPIC added: "For IPIC, obtaining a stake in AMI is a good opportunity to support the further development of the leading melamine technology of this strong and profitable company. It will enable Abu Dhabi to make use of this leading melamine technology to further develop its petrochemical sector."

Grill said: "With the two shareholders, IPIC and OMV, we have a strong base for continued expansion. Our goal is to become No. 1 worldwide in melamine by 2010." The first step towards AMI's goal is the acquisition of the Italian melamine engineering company Eurotecnica, headquartered in Milan, at the same time that IPIC acquires 50 per cent of AMI.

The addition of Eurotecnica will further enhance AMI's technological leadership and competence in melamine systems and production. The Italian company has 80 employees and is one of the worldwide leaders in the construction of melamine plants. Its acquisition enables AMI to expand its global technological leadership position and lays the groundwork for the successful implementation of the planned melamine project in Abu Dhabi.