OCI and remaining shareholders of UPC to spin off SCIB Chemical from UPC and form a strategic alliance with Asian Paints - OCI to retain 15% stake in SCIB Chemical.


Cairo, Egypt August 27, 2002: Orascom Construction Industries (stock symbols: OCIC.CA / ORCI EY) announced that its 50% owned subsidiary, United Paints & Chemicals Company (UPC), has entered into an agreement that would result in the spin-off of UPC’s wholly owned subsidiary SCIB Chemical S.A.E. resulting in a new ownership structure. The new ownership structure includes Asian Paints (India) Limited (60%), other UPC shareholders (25%), and OCI (15%). Asian Paints is India’s largest paint company with an annual turnover of approximately $US 340 and is one of the top 15 decorative coatings companies in the world. It is also India’s largest exporter of paints, exporting to 22 markets in the Asia-Pacific region, the Middle East, and Africa. Asian Paints is a market leader in six countries, including India, out of nine where it has established similar joint ventures. With LE 52 million in sales during 2001, SCIB is considered one of the largest five paint producers in the Egyptian market.
 
OCI Chief Executive Officer, Mr. Nassef Sawiris, commented “We are continuing our strategy of establishing strategic alliances with multinational leaders in the building materials industry thus obtaining access to modern technology, further strengthening brand identities, increasing the efficiency of production plants, and improving financial performance.” UPC’s current partnerships include British Palsterboard Plc (BPB – world leader in Gypsum production) and Master Builders Technologies (MBT - a unit of Degussa AG - world leader in concrete admixtures).
 
OCI focuses on three high growth business activities construction, building materials manufacturing and infrastructure development. The Construction Group provides engineering, procurement and construction services on industrial, commercial, infrastructure, and railway projects. The Building Materials Group invests in manufacturers of basic and specialized products for contractors and industrial users, such as cement and paints. The Infrastructure Group invests in long-term infrastructure concessions including industrial parks, natural gas distribution systems, and port operations.
 
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© Press Release 2003