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$270 MILLION VENEZUELAN POLYETHYLENE PLANT TO BE BUILT BY ABB UNIQUE PROJECT FINANCING PACKAGE

 $270 MILLION VENEZUELAN POLYETHYLENE PLANT TO BE BUILT BY ABB
 UNIQUE PROJECT FINANCING PACKAGE
 STAMFORD, Conn., Aug. 5 /PRNewswire/ -- Asea Brown Boveri Inc. (ABB) announced today that one of its units has received a turnkey contract to engineer and construct a $270 million linear polyethylene plant in Venezuela. Known as Resilin, the project is sponsored by Pequiven (Petroquimica de Venezuela S.A.), the Venezuelan petrochemical company; Grupo Zuliano; and ABB-CETIC (Combustion Engineering Technology Investment Corporation) and is expected to manufacture 150,000 metric tons of linear polyethylene per year.
 ABB Lummus Crest will be responsible for design, engineering, procurement, construction and overall project management services. The plant will use Dupont Canada's proprietary Sclairtech technology. This flexible process allows production of a broad range of linear resin grades, increasing Resilin's ability to meet a wide range of Venezuelan and export market needs.
 Commercial operations for Resilin are expected in the first quarter of 1994. The polyethylene, used for containers, cable coverings, plastic wrapping and other packaging products, will be marketed in Venezuela by Resilin and internationally by Dupont Canada.
 ABB Project and Trade Finance acted as financial advisor to the project sponsors and assisted in the structuring and syndication of a multi-national project finance package. Commercial loans and export credits amounting to $203 million dollars were secured with the support of five government agencies in four different countries providing financing credit and risk insurance for the project.
 The financing marks the first time the U.S. Export-Import Bank (Eximbank) has granted political risk coverage for this type of project in Venezuela. MITI (Ministry of International Trade and Industry) of Japan provided political risk insurance to the Japanese branches of European banks, enabling them to lend to Resilin. The Overseas Private Investment Corporation (OPIC) of the United States is providing political risk insurance for Citibank's contribution to the project.
 The Canadian Export Development Corporation (EDC) financed its nation's technology and equipment supply components. Additional financing came from the Corporacion Andina de Fomento (CAF) of South America.
 A syndicate of nine banks, headed by Citibank, provided commercial loans. They include the French banks, Banque Nationale de Paris, Banque Francaise du Commerce Exterieur, Credit Lyonnais and Societe Generale; Union Bank of Switzerland and Export Finance A.G. (EFAG) of Switzerland; Deutsche Bank of Germany; and NMB Bank of The Netherlands.
 ABB Lummus Crest, with headquarters in Bloomfield, N.J., is an international engineering and construction company. ABB Project and Trade Finance provides project financing support to ABB projects worldwide. Asea Brown Boveri Inc., based here, provides products and services for the power, process, industrial automation, environmental control, mass transit and other markets. The company and its subsidiaries have sales of approximately $5.5 billion and some 29,000 employees in the United States.
 -0- 8/5/92
 /CONTACT: Susan Borches of Asea Brown Boveri, 203-328-7648 (office); or 203-622-5955 (residence)/ CO: Asea Brown Boveri Inc. ST: Connecticut IN: SU:


SB -- NY016 -- 6951 08/05/92 09:13 EDT
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Publication:PR Newswire
Date:Aug 5, 1992
Words:493
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