OMV and IPIC to bundle chemistry activities into subsidiary Borealis 28. December 2006 , Vienna/Abu Dhabi

Austrian-UAE Joint Venture continues strategic repositioning

OMV, Austria's leading oil and gas group, and its core shareholder IPIC, Abu Dhabi's overseas oil investment arm, intend to incorporate their holdings in AMI Agrolinz Melamine International into their joint subsidiary Borealis within the first half of 2007.
According to the two companies, the incorporation of IPIC and OMV’s 50% of AMI into Borealis represents a strong combination of AMI's and Borealis' fields of business and operative synergies. Both companies are well positioned in their respective markets in Europe and are in the process of strengthening their growing presence in the Middle East. Borealis and AMI are utilising the favourable raw material prices in this region and the region's proximity to the rapidly growing markets in Asia. Borealis already holds a competitive position with the plastics production site Bourouge in Abu Dhabi with a capacity of 600,000 tons per year. The extension of Borouge will add another yearly capacity of 1.3 mn tons of polyolefins and is expected to go on stream in 2010.

The establishment of a production facility for melamine in Ruwais – also located in Abu Dhabi – is being pursued by AMI and ADNOC. This site will have an annual capacity of 80,000 tons. In 2005 the AMI Group had a workforce of around 1,000 and sales of EUR 470 million. Borealis had sales of EUR 4.8 bn and a workforce of 4,543.
AMI Agrolinz Melamine International GmbH (AMI), one of the leading international producers of melamine and plant nutrients where OMV and IPIC each hold 50% of the company. Borealis is Europe's second largest producer of plastics and is headquartered in Vienna. As a holding company, Borealis will provide excellent support for AMI's further international expansion. AMI's headquarters will remain in Linz (Upper Austria).

More information on -
OMV: www.omv.com
AMI: www.agrolinz.com
Borealis: www.borealisgroup.com

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