Press Release

CEPSA Lays Foundation Stone

For New Petrochemicals Plant in Shanghai

The new plant will position CEPSA Química as the second leading phenol and acetone producer worldwide

The facilities will have an annual production capacity of 250,000 tons of phenol and 150,000 tons of acetone

In a groundbreaking ceremony held today, CEPSA officially marked the start-up of construction of a chemical plant in Shanghai, a key step in its strategy of globally expanding its operations.
The event was presided over by the Economy and Information Commissioner of Shanghai, Mr. MaJing, with the attendance of His Excellency the Ambassador of Spain in China, Mr. Eugenio Bregolat and the Vice-Director of Shanghai Chemical Industry Park Administrative Committee (SCIPAC), Mr. Xu Jianming. Representatives from CEPSA included the Co-Chairman, Mr. Santiago Bergareche, and the CEO of CEPSA Química, Mr. Fernando Iturrieta, along with other Company executives and spokespersons.
Mr. Santiago Bergareche, highlighted in his opening remarks that “The two main factors that prompted our Company to make this investment were, on the one hand, to meet the growing needs of our customers in China and on the other, to take part in a rapidly-expanding market ripe with economic and commercial opportunities, in a highly-prosperous region and relying on the steadfast and committed support of the Municipal Chamber”.
He likewise underscored that “The anticipated success of this project is underpinned by a number of strengths, such as our innovative and cutting-edge technologies and strong commercial agreements and partnerships, and so we are enthusiastic and confident about the significant contributions that CEPSA will make to the local industry”.
CEPSA’s new plant, located in the Shanghai Chemical Industry Park (SCIP), will have a capacity to produce 250,000 tons of phenol and 150,000 tons of acetone. The facilities are slated to come on-stream at the end of 2013.
CEPSA Química’s CEO, Mr. Fernando Iturrieta, remarked that “We are currently witnessing a major supply/demand imbalance for phenol and acetone in China, making it necessary to import considerable volumes of these intermediates and the gap is expected to grow even larger by 2014, therefore CEPSA Química’s production site will have a utilization rate of over 90%. This project will enhance the integration of the players operating here and improve the operational flexibility and competitiveness of the chemicals industry in Shanghai”.
The new plant will help increase CEPSA Quimica’s production flexibility, providing additional capacity in China to the already existing one in Spain, and as a result, consolidate the Company’s global presence in the petrochemicals market. Upon completion, these facilities will position CEPSA Química as the second leading phenol and acetone producer worldwide.

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Press Release

CEPSA is an energy group with a workforce of nearly 12,000 employees, engaged in activities that span the entire oil value chain: exploration and production of oil and gas; refining, transportation and marketing of petroleum products and natural gas; biofuels; and electric power cogeneration and sales. CEPSA, through CEPSA Química, additionally has a world-class chemicals division that is tightly integrated with its oil refining segment, manufacturing and selling feedstock for the production of high value-added components chiefly used in making new-generation plastics and biodegradable detergents. Not only is CEPSA a major energy player in Spain, but it is also broadening its global portfolio of operations in countries such as Algeria, Brazil, Canada, Colombia, Egypt, Panama, Peru and Portugal, selling its products around the world. As of August 2011, CEPSA is owned by a single shareholder, International Petroleum Investment Company (IPIC), based in Abu Dhabi, United Arab Emirates.

Madrid, October 17, 2011

CEPSA – Corporate Communications & Institutional Relations

relaciones.institucionales@cepsa.com

Tel: (34) 91 337 62 02

www.cepsa.com

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