ABB Contributes to the Development of China Energy Industry

A key supplier to the SECCO project going into operation today

June 29th, Shanghai, - As a major supplier to the SECCO project, ABB Lummus' top management participated in the grand celebration event held in Shanghai today to mark the commercial operation of the project, Asia's largest petrochemical complex jointly invested by SINOPEC and UK-based BP.

SINOPEC, China's largest petrochemical company, launched the $2.7 billion project with British oil giant BP in 2001. Located in Caojing near Shanghai, the complex with a capacity to produce 900,000 tons of ethylene a year is bound to improve the competitiveness of China's chemical industry.

As ABB Group's wholly owned subsidiary company, ABB Lummus Global Inc. (Lummus) won contracts totaling more than $ 600 million from the SECCO project, which covered petrochemical, power and automation technologies.

In 2002 ABB Lummus was awarded an order worth over US$200 million in 2002 to provide process technologies, engineering and procurement services for a naphtha cracker and olefins conversion unit of the complex. In executing the contract, ABB Lummus brought to the SECCO project an innovative way of making propylene, which cuts energy consumption and reduces greenhouse gas emissions. It is the first time this technology is used in China.

In 2003 ABB Lummus Global won additional contracts worth $ 123 million from the project to provide the technology license, engineering, and procurement for 500,000 metric tons per year (MTA) ethylbenzene/stryrene monomer unit, and the engineering and procurement for a 300,000 MTA polystyrene unit.

Samir Brikho, President and CEO of ABB Lummus said, "the SECCO project is a strong expression of our customer's confidence in ABB's technologies, and reinforced our long-term commitment to China's petrochemical industry, where we have been present for more than 30 years."

As a leading engineering and construction company serving the process industry, ABB Lummus Global has been providing a broad range of proprietary process technologies, engineering, procurement, construction and project management services to the oil & gas, petrochemical, refining, chemicals and power industries, and has completed more than 6200 major projects in 70 countries, establishing many world records with innovative ways to successfully complete our clients' projects on time and within budget.

Since early 1970's, ABB Lummus Global has distinguished itself in China as one of the pioneer Western contractors contributing to the modernization of the Chinese petrochemical industry. Over the last three decades, Lummus has worked on over 100 projects in China, including the first world-scale ethylene plant built in China that was based on the technology of ABB Lummus Global, so are approximately 60% of the ethylene and 60% of the styrene produced in China. In addition to the SECCO project, ABB Lummus Global has been instrumental in the development of many other major Chinese petrochemical complexes such as Beijing Yanshan, Yangzi, and Qilu, as well as regional companies like Dushanzi Petrochemical and Panjin.

The rapid development of China's economy has brought ample opportunities not only for ABB Lummus Global, but also for the growth of ABB's operations throughout the country. ABB has maintained double-digit growth rate in its China operations for the last five years, making China the third largest market in the entire ABB Group. To maintain sustainable growth, ABB plans to invest another $ 100 million in China to underline its commitment to helping China to achieve its goal to be a well-off society in an all-round way by 2020.

ABB Lummus Global is now cooperating with SINOPEC Engineering Inc. (SEI) to provide management services for the multi-billion Fujian Refining and Ethylene Project. ABB Lummus Global and SEI were selected as project management contractor for the world-class integrated refining and chemical complex in December last year. ABB Lummus and SEI are working closely to ensure a smooth, coordinated and expeditious execution of the project.

ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. ABB operates in more than 100 countries and employs about 102,000 people. ABB has full fledged business activities including manufacturing, R&D, sales and service in China, with 8,000 employees, 23 joint venture and wholly owned companies and a most extensive sales and service network across 30 cities. To know more about ABB, visit www.abb.com.cn. ABB Lummus Global Inc. (Lummus) is a wholly owned subsidiary of ABB Group.

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    ABB Lummus Global Aisa Pacific Vice President Yen-Jo(Jo) Chen and ABB Lummus Global President & CEO Samir Brikho

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