Orascom Cons. Inds. ORSD OCI Announces Start of Construction Work on IFCo

  Orascom Cons. Inds. (ORSD) - OCI Announces Start of Construction Work on
  IFCo

RNS Number : 5087R
Orascom Construction Inds, S.A.E.
19 November 2012
 



 

                                     Cairo, Egypt / 19 November, 2012 11:00 PM

 

Orascom Construction Industries Announces the Start of Construction Work on
Iowa Fertilizer Company

 

Orascom Construction Industries  (OCI) announced today  that its wholly  owned 
subsidiary, Iowa Fertilizer Company (IFCo), held a groundbreaking ceremony  to 
mark the start of construction work on its new greenfield nitrogen  fertilizer 
production plant in Wever,  Iowa. IFCo will be  the first world scale  natural 
gas-based fertilizer plant built in the  United States in nearly 25 years  and 
will help reduce the United States' dependency upon imported fertilizers. 

 

Featured speakers at the event  included Chairman and Chief Executive  Officer 
(CEO) of OCI Nassef  Sawiris, Iowa Governor Terry  Branstad, Director of  Iowa 
Economic Development Authority (IEDA) Debi  Durham, and Lee County  Supervisor 
Larry Kruse.

 

Governor Branstad commented: "The Iowa Fertilizer Company plant is one of  the 
largest investments ever in the  state of Iowa.  I  am pleased to be  breaking 
ground today and moving forward with our efforts to bring thousands of jobs to
this area and to  provide our farmers access  to affordable fertilizer.   This 
project will help rejuvenate Lee County and all  of Iowa at a time when it  is 
needed most."

 

Lieutenant Governor Kim Reynolds commented: "All of Iowa will see and feel the
positive economic impact of this project.  Iowa Fertilizer Company is bringing
hundreds of millions  of dollars  into the  state that  will directly  benefit 
local outlets such as public schools.  This groundbreaking marks a step in the
right direction for economic growth and  a successful future for the state  of 
Iowa."

 

OCI Chairman  and  CEO  Nassef  Sawiris commented:  "In  November  2011,  Iowa 
Fertilizer Company was just an idea.  Today, after much hard work by local and
state officials, we celebrate  the start of construction  work on our new  US$ 
1.4 billion fertilizer plant, which represents the largest investment  project 
ever undertaken in the state.   We would also like  to thank the community  in 
Lee County  for its  support of  our project  and reaffirm  our commitment  to 
utilize local suppliers, contractors and workers whenever possible and involve
ourselves in this community."

 

During the event, IFCo  signed an agreement with  the ANR Pipeline Company,  a 
subsidiary of  TransCanada  Corporation,  covering terms  for  the  long  term 
transportation of natural  gas to the  plant, an agreement  with Citigroup  to 
serve as the lead underwriter of its bond financing issuance, and an agreement
with Iowa-based McAninch Corporation to undertake the initial earthmoving  and 
grading works on the site.

 

The Iowa  Finance  Authority's Board  of  Directors unanimously  approved  the 
issuance of up  to US$  1.2 billion  in Midwest  Disaster Area  bonds by  Iowa 
Fertilizer Company  on November  16.  As  the borrower,  IFCo will  be  solely 
responsible for the repaying  the debt and  the rates and  terms of the  bonds 
will be  based  on  its  creditworthiness.  The  Iowa  Department  of  Natural 
Resources approved the issuance  of air permits for  the new plant on  October 
26.   The  new  plant  will  utilize  the  best  available  emissions  control 
technologies and comply with all state and federal emissions requirements.

 

Iowa is the top producer of corn in the United States, and cultivates over  30 
million acres annually. Iowa has the highest use of nitrogen-based  fertilizer 
in the nation, and IFCo will be  well positioned to satisfy Iowa's demand  for 
nitrogen-based fertilizers.

 

About Orascom Construction Industries

OCI is one of Egypt's largest  corporations employing more than 90,000  people 
in 35 countries around the globe.  The OCI Fertilizer Group owns and  operates 
nitrogen fertilizer plants in Egypt,  the Netherlands, the United States,  and 
Algeria and  has  an international  distribution  platform spanning  from  the 
Americas to  Asia.  The OCI  Fertilizer  Group  ranks among  the  world's  top 
fertilizer producers with a production capacity which will exceed 7.0  million 
metric tons  in  2012.   The OCI  Construction  Group  provides  international 
engineering and construction services primarily on infrastructure,  industrial 
and high-end commercial projects in Europe,  the Middle East and North  Africa 
for public and private  clients.  The OCI Construction  Group ranks among  the 
world's top global contractors. 

  

                                     

For additional information contact:  

                                    For additional information on OCI:

OCI Investor Relations Department:   

                                    www.orascomci.com

Omar Darwazah                        

Email: omar.darwazah@orascomci.com  OCI stock symbols: OCIC.CA / OCIC EY /
                                    OCICqL / ORSD / ORSCY
 
                                     
Erika Wakid
                                    Orascom Construction Industries (OCI)
Email: erika.wakid@orascomci.com
                                    Nile City Towers - South Tower
 
                                    2005A Corniche El Nil
Hassan Badrawi
                                    Cairo, Egypt
Director
                                     
 

Tel: +202 2461 1036/0727/0917

Fax: +202 2461 9409

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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MSCZMMMMMLDGZZZ -0- Nov/20/2012 07:00 GMT