Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, together with First Energy Bank of Bahrain, announced today that they have formed a joint venture in Bulgaria called FEBORAN AD. On December 21, 2013 FEBORAN purchased 20.3% of the shares of Neochim AD, a company listed on the Sofia stock exchange.
Neochim is Bulgaria’s leading producer and distributor of fertilizers and accounts for a significant share of Bulgaria’s ammonium nitrate output. Neochim is a publicly listed company under the Public Offering of Securities Act, and operates one ammonia plant, two nitric acid plants and an ammonium nitrate plant in Dimitrovgrad in southern Bulgaria.
“This investment is again in line with our strategy to grow our fertilizer business and to maintain our number one position in Central and Eastern Europe”, says Mark Garrett, Borealis Chief Executive. “First Energy Bank is a co-investor with sound financial credentials. This cooperation allows us to further strengthen our position in the growing Bulgarian market at a time when Borealis is investing into the integration of the recent acquisition GPN SA, now renamed Borealis Chimie SAS, in France.”
“We believe that fertilizers in Europe offer attractive business opportunities with further potential for growth particularly in Central and Eastern Europe,” explains Markku Korvenranta, Borealis Executive Vice President Base Chemicals. “Neochim is a well-managed dedicated fertilizer company with competitive plants and an advantageous logistics position. Borealis L.A.T will be distributing part of the production through its distribution network.”
“First Energy Bank welcomes the co-operation with Borealis in the joint investment in Neochim,” says Mohamed Ghanem, Chief Executive Officer, First Energy Bank. “This investment extends our investment portfolio both geographically into Europe and into a fast-growing market. Furthermore, it reinforces our strategy of participating in the energy sector and investing in a well established petrochemical entity in Bulgaria.”
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For further information please contact:
Borealis Group:
Kerstin Meckler, Director Communications
Tel. +43 (0)1 22 400 389 (Vienna, Austria)
e-mail: kerstin.meckler@borealisgroup.com
First Energy Bank:
Communications Department
Tel. +973 1717 0000 (Manama, Kingdom of Bahrain)
e-mail : aaziz@1stenergybank.com, www.1stenergybank.com
First Energy Bank B.S.C.(c) (FEB) is an Islamic investment bank licensed by the Central Bank of Bahrain and headquartered in Manama, Kingdom of Bahrain.
The Bank focuses on investments in the production, transportation, storage and refining of hydrocarbons, as well as oilfield services and energy sector technologies. FEB also explores new opportunities to invest in the development of power generation capacity and renewable energy technologies.
FEB was established in June 2008, with an authorized share capital of US$2 billion, and a paid up capital of US$1 billion consisting of 1 billion ordinary shares each with a par value of US$1. The bank’s shareholders include a range of organizations and individuals with interests in the energy sector from the Kingdom of Bahrain, the United Arab Emirates, Libya, the Kingdom of Saudi Arabia, and other countries in the region.
Neochim AD is one of Bulgaria’s leading producers of fertilizers and organic and inorganic chemicals, accounting for the majority of the country’s ammonium nitrate output. Neochim is a public company under the Public Offering of Securities Act.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,200 people and operates in over 120 countries. It generated EUR 7.5 billion in sales revenue in 2012. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% owned by OMV, the leading energy group in the European growth belt. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).
Building on the unique Borstar® and BorlinkTM technologies and 50 years of experience in polyolefins, Borealis and Borouge support key industries including infrastructure, automotive and advanced packaging. The Borouge plant expansion in Abu Dhabi will be fully operational by mid-2014 with a total annual capacity of 4.5 million tonnes. After this Borealis and Borouge will have approximately 8 million tonnes of polyolefin capacity.
Borealis offers a wide range of base chemicals, including melamine, phenol, acetone, ethylene and propylene servicing a wide range of industries. Together with Borouge the two companies will produce approximately 6 million tonnes of Base Chemicals in 2014.
Borealis also creates real value for the agricultural industry with a large portfolio of fertilizers. The company distributes approximately 2.1 million tonnes per year. This volume will increase to around 5 million tonnes by the end of 2014.
Borealis and Borouge aim to proactively benefit society by taking on real societal challenges and offering real solutions. Both companies are committed to the principles of Responsible Care®, an initiative to improve safety performance within the chemical industry, and contribute to solve the world's water and sanitation challenges through product innovation and their Water for the WorldTM programme.
For more information visit:
www.borealisgroup.com
www.borouge.com
www.waterfortheworld.net
Borlink and Water for the World are trademarks of the Borealis Group.
Borstar is a registered trademark of the Borealis Group.
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