14 de January, 2009

Sigdo Koppers signs alliance with Brescia Group to develop petrochemical project in Peru.

The Chilean group Sigdo Koppers and the Peruvian group Brescia, one of the largest conglomerates in that country, agreed to invest jointly in the development of the first petrochemical project of ammonia and ammonium nitrate in Peru that will be supplied with natural gas. The initiative represents about US$ 650 million and its construction would end in 2011.

The project includes the construction and operation of an ammonia plant with a production capacity of 710,000 tons per year and another plant of industrial-grade ammonium nitrate, with a production capacity of 350,000 tons per year. Both plants will be located in the department of Ica and their production will be primarily destined to supply the Peruvian mining and industrial sector. Currently, theenvironmental, technical and detailed engineering studies are being carried out, as well as the authorizations required from the authorites for the construction and operation of the plants.

For this investment, both groups created the Peruvian society Holding Nitratos S.A., in which the Brescia group will control 51%, while Sigdo Koppers will participate through its subsidiary Enaex, which will hold the remaining 49%. Holding Nitratos will own the operating company Nitratos del Perú, who will develop the project.

"This project is made possible by the confidence of both investor groups inthe state and prospects of the Peruvian economy and in the significant progress of Peru, as well as the excellent framework for business relationships fostered by the governments of both nations," said Ramon Aboitiz together with Pedro Brescia, representatives of both investor groups.

Thus, the Brescia group will contribute withits vast knowledge of Peru's industrial market, while Sigdo Koppers will provide their extensive experience in the development of the petrochemical sector, through Enaex.

“Sigdo Koppers is proud to partner with the Peruvian Brescia group, which for the first time established a business alliance to develop a project in the industry area," added the president of the Chilean conglomerate, Ramon Aboitiz. For Sigdo Koppers, this petrochemical project is part of its long-term investments and part of its internationalization plan.

This association evidences the confidence of the Sigdo Koppers group in the development of Peru and of the important opportunities for joint development that companies from both countrieshave in relation to the opportunities in the regional and global markets.

The supply of natural gas required as a raw material for this industrial complex will be provided by Consorcio Camisea, through its operator Pluspetrol Perú, with which a commitment was established to supply 72 million cubic feet.

The project will add value to the natural gas extracted from the Camisea reserves and in the construction phase will generate up to 1,600 direct jobs. Meanwhile, during the operating phase approximately 400 direct jobs and a significant number of indirect jobs will be generated, constituting an important source of development for the department of Ica, since the plants will be located in its industrial zone.

Ammonia and ammonium nitrate are important supplies for industry and mining. With this investment, the supply in Peru will be guaranteed and their impact on the competitiveness of companies will be very positive.

The Brescia group is one of the most important Peruvian investment groups and for over 60 years has been investing decisively and diversely in relevant sectors of industry, finance and services in Peru. The companies that comprise it are 100% Peruvian and are currently leaders in their areas of business and some even at regional and global levels.

The Brescia Group controls the Minsur companies, a company that is among the three major producers of tin in the world; the Compañía Minera Raura, a poly metallic mine involved in the sale of copper, lead and zinc, and Exsa, a leading company in the Peruvian market with over 50 years experience in explosives and welding.

The Sigdo Koppers group is one of the leading business groups in Chile, with presence in the Services, Industrial, Commercial and Automotive sectors, through its more than 40 subsidiaries and affiliates, companies that are leaders in their respective industries.

Sigdo Koppers SA has a vast knowledge in the mining and petrochemical sector, in which participates through its subsidiary Enaex, a company created in 1920 by Du Pont, USA,company that maintained its ownership for 51 years. Thus, during its 87 year history, Enaex has has established itself as the most important ammonium nitrate producing company and the most important complete rock fragmentation service provider in Latin America.

Currently, Sigdo Koppers is present in Peru through its subsidiaries Ingeniería y Construcción Sigdo Koppers (ICSK), SKC Rental, SKC Maquinarias Perú (representative of Volvo Construction Equipment) and SK Bergé. Formed in 1960, Sigdo Koppers S.A. has achieved a steady growth in its turnover, thanks to its ability to identify new investment opportunities within its industrial, technological and commercial expertise.