TEC was Awarded the Contract for Grass-root GPPS Plant in Russia

Toyo Engineering Corporation (TEC, Mr. Toshihiko Hirose, President and C.E.O.) has been awarded a contract to build a grass-root GPPS (General Purpose Polystyrene) plant (capacity of 50,000 tons per year) at Kirish located in the northwest area in Russian Federation (about 200 km to the east of St. Petersburg) by ZAO Penoplex in Russia (the client). TEC's scope of work and supply for this project is Licensing, Basic Design, Detailed Design, Procurement and Construction Supervision. TEC-MCI GPPS Process co-owned by TEC with Mitsui Chemicals, Inc. is applied to this plant. The plant is scheduled to start commercial production in 2003.

The following advantages are considered to be a key success factors to win this project against European EC is one of the world's leaders in the construction of urea plants, and the plants built by TEC account for about 25% of the urea production capacity worldwide. There is demand for an increase in food production, mainly in the competitors; (1) Multiple records of plants by TEC-MCI GPPS Process and its superiority and advantage in performance, (2) TEC's rich experience of projects execution in Russia since the former USSR era and the wealth of know-how accumulated through TEC's project experience in Russia for years including the application of Russian codes and standard.

This project is planned to supply raw material to existing foamed polystyrene units owned by the client , located in the same area . The demand of foamed polystyrene is highly growing in Russia that the client has expanded its production capacity of foamed polystyrene to three times more during last few years and consequently has over 80% share in the foamed PS market in Russia. The client, ZAO Penoplex is one of the emerging private conglomerates newly established in the liberal economical framework in new Russia.

In accordance with the increase of the Russian domestic consumption of consumer goods year by year, the domestic demand of petrochemical products and chemicals is continuously growing up. In this circumstance, the domestic needs of new plants is expected in rapid growth and TEC are eager to expand its business activity through its rich experience in Russia for the last 30 years.