26 Sep 2013 14:20
UNITED PETROCHEMICAL COMPANY AND ALPEK
ESTABLISH A JOINT VENTURE
Moscow, Russia – September 26, 2013 – Sistema JSFC (“Sistema”) (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that its subsidiary JSC United Petrochemical Company (“UPC”) has signed a joint venture (“JV”) agreement with Mexican company Grupo Petrotemex, S.A. de C.V., a subsidiary of Alpek, S.A.B. de C.V. (“Alpek”) for the construction of an integrated purified terepthalic acid (PTA) – polyethylene terephthalate (PET) plant in Ufa, Bashkortostan.
Under the agreement, Alpek and UPC will elaborate a detailed business plan to determine the project’s feasibility. Alpek and UPC will each invest US$10 million in the completion of the plant’s evaluation stage. Construction is subject to both companies approving the business plan.
The new facility is expected to be an IntegRex® PTA – PET site dedicated to serve the Russian market with a maximum installed capacity of 600,000 tonnes PTA and 600,000 tonnes PET. The parties are negotiating the supply of the required material - Paraxylene - with JSOC Bashneft.
The European Commission has approved the establishment of the JV. Implementation of the project will be subject to additional approvals from governmental authorities.
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For further information, please visit www.sistema.com or contact:
| Investor Relations Evgeniy Chuikov Tel: +7 (495) 692 11 00 ir@sistema.ru | Public Relations Ekaterina Tsukanova Tel.: +7 (495) 228 1536 pr@sistema.ru |
Sistema is the largest publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of US$ 8.5 billion for the second quarter of 2013, and total assets of US$ 44.4 billion as at June 30, 2013. Sistema’s global depository receipts are listed under the symbol “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the symbol “AFKS” on the MICEX-RTS Stock Exchange. Sistema was ranked number 315 in the 2011 edition of the Fortune Global 500 list. Website: www.sistema.com
The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.
Grupo Petrotemex, S.A. de C.V. is a subsidiary of Alpek, S.A.B. de C.V. Alpek is the largest petrochemical company in Mexico and the second largest in Latin America. The company operates two business segments: Polyester (PTA, PET and polyester fibers), and Plastics & Chemicals (PP, EPS, caprolactam, polyurethanes and other specialty and industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, operates the largest expandable polystyrene plant in America and one of the largest polypropylene plants in North America. It is also the only producer of caprolactam in Mexico. In 2012, Alpek reported revenues of U.S. $7,277 million and EBITDA of U.S. $728 million. The company operates 19 plants in Mexico, USA and Argentina, and employs 4,500 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
United Petrochemical Company (“UPC”) is a vertically integrated petrochemical group which owns four enterprises located in the Bashkortostan Region: Ufaorgsintez; Tuimazinkoye and Shkapovskoye Gas Processing Plants, which produce liquid petroleum gas and stable natural gasoline (SNG) from associated petroleum gas (APG) and natural gas liquids (NGL); and Bisphenol-A plant. Ufaorgsintez is one of the leading petrochemical producers in Russia. Its product line includes polypropylene, polyethylene, phenol and acetone. In 2012 UPC generated a combined revenue of RUB 17.9 billion (USD 550 million). UPC is wholly-owned by Sistema.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the shares or securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies.
Copyright Business Wire 2013