Meeting with Industry Leaders Marks Joint Venture Agreement
ME Newswire / Business Wire
ABU DHABI, United Arab Emirates - Tuesday, May 14th 2013
W. R. Grace & Co. (NYSE: GRA) and Al Dahra Agriculture have executed a Joint Venture agreement to build the first fluid catalytic cracking (FCC) catalysts manufacturing facility in the Middle East. The companies marked their commitment and progress with a briefing and gala dinner today for over 100 industry and government leaders from around the region.
The state-of-the-art facility, which represents a capital investment of approximately $200 million, will serve refineries throughout the Middle East and potentially into South Asia. It will be built on just under 150,000 sq. meters of land in the Kizad Industrial Zone approximately 70km from the city of Abu Dhabi in the United Arab Emirates (UAE).
A logistics hub will be completed in the first quarter of 2014. Detailed engineering work for the full manufacturing facility is underway and construction is expected to begin in the fourth quarter of 2013. The facility will create approximately 200 new jobs and is scheduled to begin operations in the fourth quarter of 2015.
Officials from The Abu Dhabi Oil Refining Company (TAKREER) and Oman Oil Refineries and Petroleum Industries Company (Orpic), spoke at the event, which was presented under the patronage of UAE Energy Minister H.E. Suhail Mohammed Al Mazrouei.
According to Grace Chairman and Chief Executive Officer Fred Festa, regional demand for FCC catalysts is expected to grow substantially in the coming years. "This project, Grace’s most significant capital investment in several years, will help us extend our global leadership in catalysts,” he said. "We couldn’t be more pleased with our Joint Venture Partner, Al Dahra Agriculture, on whom we can count for invaluable support here in the region.”
For Al Dahra Agriculture, the project will diversify and strengthen its fast-growing business while advancing the vertical integration of the petrochemical industry in the Emirate of Abu Dhabi. "Since we announced, slightly over a year ago, our intention to pursue this partnership with Grace, our initial assessment of the opportunity has been affirmed many times,” said H. E. Khadim Al Darei, Al Dahra’s Vice Chairman & Managing Director.
Nearly 40 percent of transportation fuels worldwide are processed with Grace catalysts and Grace is the global leader for FCC catalysts and additives. Grace provides a broad, highly differentiated product portfolio and industry-leading technical service. Grace’s research leadership and flexible manufacturing system support its value-added technology tailored to meet customers’ current and future needs.
Al Dahra Agriculture’s strong partnership with the UAE government in realizing the strategic food security program and ensuring long-term growth and sustainability for the Emirate while in parallel growing commercial activities in global agribusiness, brings unparalleled value to the new venture. The company is well positioned to become a key international player in its sector and a leader in the food supply chain business. The company’s growth is a reflection of its exceptional service and delivery, the quality of agricultural produce and logistics services, and long-term customer satisfaction and loyalty.
About Grace
Grace is a leading global supplier of catalysts; engineered and packaging materials; and, specialty construction chemicals and building materials. The company’s three industry-leading business segments—Grace Catalysts Technologies, Grace Materials Technologies and Grace Construction Products—provide innovative products, technologies and services that enhance the quality of life. Grace employs approximately 6,500 people in over 40 countries and had 2012 net sales of $3.2 billion. More information about Grace is available at www.grace.com.
About Al Dahra Agriculture
Al Dahra is a leading company specializing in agriculture and animal production. With global operations, farms and production facilities in the Americas, Europe, Asia and Africa, it is the premier supporter of the stable supply of high quality forage, fresh produce, dairy products and commodities to the local and regional market. Its unique value proposition coupled with specialization in logistics and supply chain further enhances its distinguished market position. For more information, visit Al Dahra’s website at www.aldahra.com.
This announcement contains forward-looking statements, that is, information related to future, not past, events. Such statements generally include the words "believes,” "plans,” "intends,” "targets,” "will,” "expects,” "suggests,” "anticipates,” "outlook,” "continues” or similar expressions. Forward-looking statements include, without limitation, all statements regarding Grace’s Chapter 11 case; expected financial positions; results of operations; cash flows; financing plans; business strategy; budgets; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; and markets for securities. For these statements, Grace claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Like other businesses, Grace is subject to risks and uncertainties that could cause its actual results to differ materially from its projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results to materially differ from those contained in the forward-looking statements include, without limitation: developments affecting Grace’s bankruptcy, propose plan of reorganization and settlements with certain creditors, the cost and availability of raw materials (including rare earth) and energy, developments affecting Grace’s underfunded and unfunded pension obligations, risks related to foreign operations, especially in emerging region, acquisitions and divestitures of assets and gains and losses from dispositions or impairments, the effectiveness of its research and development and growth investments, its legal and environmental proceedings, costs of compliance with environmental regulation and those factors set forth in Grace’s most recent Annual Report on Form 10-K, quarterly report on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the Internet at www.sec.gov. Reported results should not be considered as an indication of future performance. Readers are cautioned not to place undue reliance on Grace’s projections and forward-looking statements, which speak only as the date thereof. Grace undertakes no obligation to publicly release any revision to the projections and forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.
Contacts
Grace, EMEA
Andre Lanning, +49 (0)6241 403 1316
andre.lanning@grace.com
or
Rich Badmington, 410-531-4370
rich.badmington@grace.com
or
Al Dahra Agriculture
Nisrine El Khoury, +971 50 2403439
Nisrine.elkhoury@aldahra.ea
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