2012/7/6  BP

First for BP as it Licenses Latest Generation PTA Technolgy to JBF Petrochemicals

BP and JBF Petrochemicals (a wholly owned subsidiary of JBF Industries Ltd.) have signed an agreement for licensing BPfs latest generation purified terephthalic acid (PTA) technology. JBF intends to build a 1.25 million tonnes per annum (tpa) unit at the Special Economic Zone in Mangalore, India, to produce PTA, the primary feedstock for polyesters used in textiles and packaging. JBF expects the Mangalore plant to come on stream at the end of 2014.

gThis first third party, non-affiliate, licence recognises the quality of BPfs technology and builds on the excellent relationship between our companies. JBF is a world-class polyester producer and Ifm proud that theyfve chosen BPfs leading technology,h said Nick Elmslie, chief executive of BPfs Global Petrochemicals Business.

gOur PTA technology has significantly lower capital and operating costs compared with conventional PTA plants and is more energy efficient, uses less water, and produces less solid waste than its competitors. We have invested significantly in our proprietary technology and there are two routes to monetize this; one is through investment and one is through licensing. We have decided that the maximum value to BP will come both from investing in projects such as our Zhuhai 3 project in Guangdong, China and through licensing.h

Over the years the PTA market has continued to grow at a high rate, over 80% of the demand is now in Asia, with around 50% in China alone. gThe market is now of such a scale - greater than 50 million tonnes a year and continuing to grow at close to 7% - that three or four new world-scale plants per year will be needed. This creates a material opportunity for us to add value by way of our technology,h said Elmslie.

Mr. B.C.Arya, Chairman JBF Industries Ltd., and Director of JBF Petrochemicals said: gThis investment is highly strategic for us, fulfilling our captive requirements for PTA at the lowest possible cost. This will make our integrated operations in India and the UAE highly competitive for the long term and underpin our position as one of the worldfs leading polyester producers.h

Notes to editors:

JBF Industries
JBF Industries Ltd. is a global polyester producer with annual capacity of 1.1 mtpa, with three manufacturing sites in India (Sarigam and Silvassa) and one in the UAE (Ras Al Khaimah). They are listed on both the Mumbai Stock Exchange and the NYSE, and the major shareholders are the Arya family with 42.7 % (as of 31st March 2012) ownership.

In October 2011, BP and JBF reached agreement on the construction of JBFfs 390,000 tpa PET (polyester resin) plant at Geel, Belgium, alongside BPfs 1.4 million tpa asset, Europefs largest PTA facility.

2011/8/11   BPAxM[PTAHPETvgUv