PCC and JSC Shchekinoazot Form JV to Produce High-quality DME in Russia

Duisburg, Germany / Brzeg Dolny, Poland -- PCC SE of Duisburg, Germany and JSC Shchekinoazot of Pervomayskiy near Shchekino, Russia have announced the founding of the "DME Aerosol" joint venture. It represents the cornerstone of a project to produce high-quality dimethyl ether (DME) in Russia. The relevant contracts were signed recently in Brzeg Dolny, Poland on the factory grounds of PCC Rokita SA.

DME is primarily used in the cosmetics industry as a blowing agent for hairsprays as well as for the manufacture of insulating foams (one-component PU foam).The production plant with an annual capacity of 20,000 tonnes will be constructed directly on the grounds of joint venture partner JSC Shchekinoazot. The chemical company has its headquarters in the Tula region, some 180 kilometres south of Moscow. Production start is slated to begin in 2014. Thanks to its modern methanol facility, JSC Shchekinoazot can ensure a secure supply of raw materials for the new DME production line. The new production plant, which will manufacture DME at aerosol quality, employs cutting edge technology developed by an internationally leading company in this area.

"We are looking forward to working with a company as highly regarded as Shchekinoazot, who will be rounding out their product portfolio with the establishment of the DME plant", stated Waldemar Preussner, chairman of the executive board of PCC SE, at the contract signing. "PCC brings to the joint venture knowledge about the production of DME and relevant market insights. What were seeing here is cutting-edge technology and expertise combined with existing production capacity and location-related synergies for the new DME plant to form a strong foundation for the success of our joint venture".

Boris A. Sokol, president of JSC Shchekinoazot, added: "For us its of great importance that we succeeded in acquiring a major European holding as a joint venture partner to ensure consistent improvement of the new technologies. Once the new production plant is successfully brought online, the DME Aerosol joint venture will be able to offer consumers a high quality product. Russia also has extensive natural resources and is counted among the most dynamically growing markets in the world".

"The good transportation infrastructure in the Tula region and relative proximity of this region to the key markets of Eastern Europe provide an optimal basis for the successful business of the DME Aerosol joint venture", Mr Preussner and Mr Sokol explained. "As a European partner for the manufacture of DME for cosmetics and perfumes and for polyurethane foam, we see our target markets in Eastern Europe, Russia and the CIS states", Mr Preussner added.

About JSC Shchekinoazot

JSC Shchekinoazot has its headquarters in Pervomayskiy near Shchekino, Russia and is counted among that countrys leading chemical companies. Its main product lines are methanol, caprolactam and sulphuric acid. Exports represent roughly 70% of its sales. One major investment project from last year saw Russias most modern methanol production facility brought online. The new M-450 facility offers 450,000 tonnes of annual capacity.

About PCC

PCC is an internationally operating group of companies under the leadership of PCC SE (formerly PCC AG) based in Duisburg, Germany. Since the companys inception in 1993, group sales generated in the three divisions - Chemicals, Energy and Logistics - have risen from just under 60 million euros in 1994 to approx. 620 million euros in 2011. PCC today employs approximately 2,300 staff in more than 70 subsidiaries and associated companies in 12 countries.