19 July 2007- Aker Kvaerner has been awarded a contract by ShenHua Baotou Coal Chemicals Co., Ltd for a new polypropylene (PP) and polyethylene (PE) facility at its coal chemical complex in Baotou, Inner Mongolia, People's Republic of China. Aker Kvaerner is providing the basic engineering design, technical advisory services, and certain offshore equipment procurement service.  The contract value to Aker Kvaerner was not disclosed.  

ShenHua Baotou is part of ShenHua Group Corporation Limited - the biggest coal enterprise group in China and one of the largest coal enterprises in the world. The project will utilise UNIPOL(TM) PP Technology from The Dow Chemical Company and Univation's UNIPOL(TM) PE technology - two of the core technologies in the Aker Kvaerner Process portfolio. Both the new plants will have a capacity of 300,000 metric tons per annum (tpa). The project commences this month, and the PP plant start-up is expected in latter half of 2010.

This is the sixth Polyolefins project that the company is currently executing. Johan Cnossen, President of AK Process, said, "We are delighted to be working with the ShenHua Group again on this new project. We have a strong project record and considerable local knowledge of working in the Chinese market. Both technologies are proven to be highly competitive. And, having worked across nearly 40 of the UNIPOL(TM) PP or PE projects around the world, Aker Kvaerner has the experience to execute this project to a high standard."

UNIPOL(TM) PP Technology from The Dow Chemical Company offers a process that is easy to operate, simple to customise, highly reliable, and provides high product consistency. This high process flexibility combines with a broad product capability, to deliver a very competitive solution. Indeed, the more than 35 UNIPOL(TM) PP reactor lines in operation around the world consistently rank among their owner's most efficient and reliable. Aker Kvaerner had a major role in the engineering, procurement and construction of 12 of these PP reactor lines, making the company one of the most experienced UNIPOL(TM) PP process contractors in the industry.

Univation's UNIPOL(TM) PE process offers a high quality, broad product range, combined with the ability to scale up or down or change product mix. The process also offers lower capital and operating costs. Aker Kvaerner had a major role in the engineering, procurement and construction of 26 of the more than 100 UNIPOL(TM) PE reactor lines either in operation or under construction around the world - and again the operating lines rank highly for efficiency and reliability.

Aker Kvaerner also provided project management consultancy services for ShenHua Group's Coal Liquification project at Majiata, Inner Mongolia, which will be mechanically completed in the second half of 2007. The project was the first commercial scale plant incorporating direct coal liquefaction, a process that involves the conversion of coal to hydrocarbon liquids via hydrogenation. 

ENDS

 

 

Media:

UK: Vanessa Mourant, Communications Manager - Aker Kvaerner, Tel: +44 (0) 207 339 1064 Mob: +44 (0)7771 806566

Netherlands: Johan Cnossen, Aker Kvaerner, Zoetermeer, Tel: +31 (0)79 368 8721

 

Investor relations:
Lasse Torkildsen, VP Investor Relations, Aker Kvaerner. Tel: +47 67 51 30 39

 

Career opportunities:
Visit http://www.akerkvaerner.com/Internet/CareerCentre

 

AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals and Power Generation. The Aker Kvaerner group is organised in a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.

The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 50 billion and employs approximately 23 000 people in about 30 countries.

Aker Kvaerner is part of Aker (www.akerasa.com), a group of premier companies with a focus on energy, maritime and marine-resources industries. The Aker companies share a common set of values and long traditions of industrial innovation. As an industrial owner with a 40.1 per cent holding in Aker Kvaerner, Aker ASA takes an active role in the development of its holdings.

Aker Kvaerner's Process and Construction business area is a world leader in the project management, design and construction of major projects spanning refining, petrochemical processing, metals and mining, power generation, and acid plants.  From initial concept through technology development, process technology application, design, procurement, construction, commissioning, operations, maintenance, modification and decommissioning, we provide our customers with the full life cycle of services.  Process and Construction provides sound local expertise, combined with the depth and strength of global project operations.

 

AK Process is a trading name of Aker Kvaerner Projects Ltd. a wholly owned subsidiary of AKER KVAERNER ASA and the legal entity responsible for the execution of the work. AK Process serves the chemicals and polymers, refining and onshore oil & gas industries.  It provides the full life cycle of a project from concept studies, through to design, engineering, project management, delivery of process technologies, procurement, construction and maintenance services. As a pure project execution/EPC specialist, AK Process can provide customers with strategic 'one-off' services or full turnkey solutions under a single project management control. It works with its customers in the development of major technological innovations, having participated in the conceptualisation and implementation of ideas, which are the foundation for world-class production facilities. Also offered are consultancy services in reliability, business modelling and environmental, health, safety and risk management.

ShenHua Group Corporation Limited is a wholly state-owned mining and energy company, which operates the Shenfu Dongsheng coalfield in PRC. ShenHua Group Corp. is responsible for the overall planning/development & operation of the Shenfu Dongsheng coalfield, including the related railway, power station, coal terminal and shipping fleet.

About The Dow Chemical Company  Dow is a diversified chemical company that harnesses the power of science and technology to improve what is essential to human progress.  The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $49 billion and employs 43,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.  More information about Dow can be found at www.dow.com.  Dow Technology Licensing is a business unit of Dow that markets technologies owned by The Dow Chemical Company, Union Carbide Corporation and their subsidiaries.  More information about Dow Technology Licensing can be found at www.dow.com/licensing.

Univation Technologies is a joint venture between The Dow Chemical Company and ExxonMobil Chemical Company, and is the world leader in licensing gas phase polyethylene technology. Univation has comprehensive technology programs focused on the UNIPOL polyethylene gas-phase process, and is committed to delivering value to the polyethylene industry.  Visit Univation's website for more information at www.univation.com

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com