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Titan Group of Companies (Omsk) 27/11/2006

Construction begins on biocomplex of Titan Group in Omsk

____________________________________________________________________ Press service: press@titan-omsk.ru Official website: www.titan-omsk.ru Tel.: (495) 956–55–37

In a year and a half, on May 1, 2008, a «biochemical cluster of the 21st century», the first Russian biocomplex will go on stream in Western Siberia… A number of industries are connected with the work of the bioethanol complex: the agricultural, food, medical, pharmaceutical, and light ones… A training center for the biofuel industry will be established based on the Omsk facility.

Photos: www.titan-omsk.ru

Press release November 23, 2006, Omsk

Titan Group has begun the construction of a biofuel complex in Omsk, Western Siberia. The first pile was driven on November 22 to mark the start of the construction. Governor of the Omsk region Leonid Polezhaev, director of the department of economic programmes of the Russian ministry of agriculture Vitaly Morozov and other officials took part in the event.

The ceremony was also attended by representatives from Russian and foreign companies involved in the biocomplex construction: engineering and technological companies, banking groups, future suppliers of biological and chemical feedstock, cattle farm contractors. Delegates from 10 countries of the CIS and Europe took part in the ceremony held on the construction site.

The first Russian biofuel complex is due to become operational on May 1, 2008.

Thus, the construction works are scheduled to take a year and a half to complete.

The Omsk biochemical complex is expected to have annual capacities of 150,000 tonnes of bioethanol, 115,000 tonnes of carbon dioxide, 240,000 tonnes of dried distillers’ grain with solubles and bran. The complex will be able to process over 600,000 tonnes of grain per year. The company’s business plan provides for phased construction. In the first stage of the project, a fuel bioethanol plant has to be built. Once the complex online, several different manufacturing operations will be run simultaneously. The single processing chain includes a bioethanol plant, a pig farm, a mixed feed unit, slaughter and meat packing plants.

According to the plan of the construction and infrastructure development, the total project investment will surpass 13.5 billion roubles (nearly USD 0.5 billion). Kazakhstan’s TuranAlem bank and Alta of the Czech Republic participated in funding the project. “Several plants of its kind are being built in Czechia today. Although each of those plants has slightly less capacity (under 100,000 tonnes of ethanol per year) our company is experienced in implementing identical projects,” Milos Krutak, Commercial Director of Alta, said. In addition to the Czech and Kazakh companies, international companies specializing in high technologies and project financing took part in funding the construction. Some 5.3 billion roubles worth of foreign investment is expected to be attracted to fund the construction, including nearly 2 billion roubles to be spent on the pig farm project.

The unique biocomplex will be a pilot site for the implementation of state-of-the-art manufacturing processes. The work of the complex will promote the development of 5–6 industries, including the agriculture, food, medical, pharmaceutical, and light industries.

The Russian ministry of agriculture plans for a training center for the biofuel industry to be established based on the Omsk facility.

“The Titan group of companies begins the construction of a biocompex that will be the first plant of its type in Russia and the second in the CIS. Meanwhile, there are hundreds of similar plants in the world. Our company has yet to catch up and I hope many other Russian companies have the same plans. We are at the beginning of a long road and do not plan to stop. I also want to stress that the project would never have started if we had not been supported by the government of the Omsk region, the ministry of agriculture and by our numerous partners in Russia and abroad,” Mikhail Sutyaginsky, Director General of Titan Group, said.

Photos from the ceremony: www.titan-omsk.ru/rus/news_detail.php?idnews=73

About the company: ZAO Titan Group of Companies is a Russian petrochemical company and the largest Russian producer of MTBE. Titan is a general investor of the rubber producer OAO Omsky Kauchuk and an owner of ZAO Ecooil. In September 2006, the company, jointly with TOO Basko, opened the first CIS bioethanol complex, Biokhim, in Kazakhstan. The group is also building a PP integrated plant in the Omsk region, Western Siberia. The company was established in 1989 in Omsk.

Press Service of Titan Group For additional information, please send a request to press@titan-omsk.ru Tel.: +7 (495) 956–55–37