Order Received for China's Largest Fertilizer Complex

Feb. 26, 2001

  Kawasaki has signed a contract with Beijing-based China National Offshore Oil Corporation (CNOOC), in conjunction with Kellogg Brown & Root (KBR) of Houston, Texas, to build a new fertilizer complex on Hainan Island, the People's Republic of China. The ¥17 billion contract calls for completion of ammonia and urea plants by the end of December 2003.
  The largest complex in China, to be located in Dongfang on the island, will have a daily capacity of 1,500 tons of ammonia, produced from natural gas harvested in fields off Hainan Island, and 2,700 tons of urea, derived from the ammonia product. The ammonia plant will utilize KBR's Purifier Process technology; the urea plant will use Holland's Stamicarbon Urea 2000 pool condenser technology. The final process unit is based on the Hydro Agri fertilizer technology of Belgium's Hydro Fertilizer Technology. The urea will be used in the production of chemical fertilizers for agricultural use in China.
  Kawasaki and KBR are currently building an ammonia plant in Xingjiang, China, for Zepu Petroleum Chemical Corporation. These are just two examples of their partnership in Japan and overseas. The Hainan fertilizer complex contract endorses their proven capabilities on global-scale projects.
  China is the largest consumer of chemical fertilizers in the world, with demand continuing to increase both there and in countries in Southeast Asia. Kawasaki will further strengthen coordination and marketing activities with KBR, to meet the growing need for fertilizer plants.