Odfjell: Acquisition of Tank Terminal in Korea

OSLO, Norway, Feb. 13, 2002 (PRIMEZONE) -- In line with our strategy to expand our tank terminal activities at important petrochemical locations around the world, Odfjell ASA has signed a Memorandum of Understanding with Korea Petrochemical Industry Company (KPIC) to acquired 55% of their chemical tank terminal project in Onsan, Korea, and together with KPIC to establish a Joint Venture terminal company with purpose to own and operate the new tank terminal.

The tank terminal which is currently under construction has a strategic location in an important petrochemical distribution and transhipment hub in Northeast Asia. Odfjell is one of the largest carriers of bulk liquid chemicals in and out of Korea with a significant number of port calls and transshipment operations in the region.

The terminal, currently named Onsan Tank Terminal (OTT), will in its first phase have 39 tanks with a total storage capacity of 109 000 m3 and will otherwise have ample land for future expansions. The new Joint Venture company will be the owner of one jetty and will have access to a second jetty, each with the capability to handle two vessels at the time. The total investment on a 100% basis is estimated to be about USD 40 million. The terminal will become operational in the middle of April 2002 with Odfjell as the managing partner.

Odfjell's strategy is to have storage facilities at important chemical distribution centres around the world. In view of the company's existing tank terminals in Houston, Rotterdam, Singapore and in China, achieving a foothold in Korea represents another important step in this direction.

Odfjell is the leading player in the global market for transportation and storage of bulk liquid chemicals and related logistical services. The company's fleet of chemical tankers now totals 86 with the ships traded both globally and regionally. Odfjell's global services link the continents together and an expanding regional fleet, operated from Singapore, trades extensively within Asia, Australia and New Zealand. Odfjell Terminals has a worldwide network of chemical tank terminals with a total storage capacity of 2,5 million cbm. Odfjell additionally owns and operates tank containers. Priority is being given to further developing the company's integrated logistical services.

Korea Petrochemical Industry Company is a major petrochemical company established in 1970, with a production capacity of 400,000 MT of ethylene and 700,000 MT of polyolefins. As the owner of a chemical tank terminal currently under construction (OTT), KPIC wants to develop the terminal to a world class facility through partnerships with Odfjell.


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