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EBX and OCI Planning to Develop Fertilizer Complex

The fertilizer complex is expected to have up to 3 million tons of annual capacity producing a diversified portfolio of nitrogen-based fertilizers.

EBX Group and Orascom Construction Industries Planning to Develop State-of-the-Art Fertilizer Complex in Acu Superport, Brazil Rio de Janeiro-based EBX Group (EBX) and Cairo-based Orascom Construction Industries (OCI) announced today that they are planning to develop a state-of-the-art integrated nitrogen-based fertilizer complex in the Acu Superport in Brazil.

The Superport is being developed by LLX, the logistics arm of EBX. The Superport is located in proximity to more than 85% of Brazil's discovered oil & gas fields. At its completion, Acu Superport is expected to be connected to major railway and road infrastructure allowing access to regions across the country that are responsible for north of 75% of gross domestic product. The Superport also allows seamless access to the three major agricultural producing regions comprising 87% of total Brazilian agricultural output. With USD 40 billion in investments expected at the Superport, the proposed site benefits from robust infrastructure and all the necessary utility requirements.

The fertilizer complex is expected to have up to 3 million tons of annual capacity producing a diversified portfolio of nitrogen-based fertilizers. It is envisioned that total investments for the planned phases of this project may reach USD 3 billion. The project will be subject to the strictest environmental standards.

The project would constitute a milestone in the path of making Brazil a self-sufficient producer and consumer of nitrogen fertilizers thereby improving reliability and availability of strategic fertilizer supplies for the domestic farming industry. Given the current severe congestion in existing Brazilian Ports, the new quality supply from the project would improve the supply process to distributors and farmers.

It is envisioned that the natural gas required for the project would be provided on an arms length basis by major natural gas suppliers, such as OGX, the oil and gas arm of EBX Group.

Mr. Eike Batista, the Chairman and CEO of EBX commented "we firmly believe in promoting value-added industries in Brazil with an aim to create sustainable jobs, transfer technology and control our own strategic supplies of key commodities required for Brazil's long-term growth and development."

Mr. Nassef Sawiris also commented "we are delighted to partner with EBX in this industrial project which will transform our presence in the Brazilian fertilizer market. OCI aims to increase its presence in the Brazilian market currently as an importer by making a longer-term commitment to the Brazilian economy through such an investment."

The two parties will aim to enter into a binding joint-venture agreement, which shall be subject to due diligence, final transaction documentation as well as applicable corporate and regulatory approvals.