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Grace Signs Investment Framework to Support FCC Refining Industry in Kazakhstan

COLUMBIA, Md., Jan. 16, 2018 (GLOBE NEWSWIRE) -- W. R. Grace & Co. (NYSE:GRA) has signed an investment framework agreement with 1) “KazMunayGas” (ҚазМұнайГаз), Kazakhstan’s national operator for exploration, production, refining, and transportation of hydrocarbons, representing the state in Kazakhstan’s petroleum sector; and 2) “United Chemical Company” LLP, (Біріккен Химиялық Компания), operator of Kazakhstan’s State Program on Accelerated Industrial and Innovative Development in the chemical industry.

United Chemical Company


Under the framework, Grace will provide Fluid Catalytic Cracking (FCC) catalysts and technical services to the refineries operated by KazMunayGas (KMG), as well as investments to construct a catalysts logistics terminal and an FCC catalysts laboratory in Kazakhstan. As a result of modernization of KMG refineries, new downstream units will significantly improve deep oil conversion and production of motor fuels, leveraging Grace products and technology. The total economic value of the agreement could deliver over US$200 million in catalysts, technical services, and facilities over the proposed seven-year initial term.

According to Grace Chairman and Chief Executive Officer Fred Festa, “We are pleased to move forward with this agreement, which reflects the commitment of Kazakhstan’s leaders to strengthen the capabilities and value of the country’s petrochemical infrastructure and economy. It also demonstrates Grace’s commitment to serve customers around the world as the leader in FCC and polyolefin catalysts.”

KazMunayGas Executive Vice President for Oil Transportation, Refining and Marketing Daniyar Tiyessov said, “We are pleased that Grace supports KMG initiatives related to refinery modernization and we are excited to partner with Grace to ensure that the revitalized Kazakhstan refining industry is made stronger with state-of-the-art technology.”

Zhenis Osserbay, Chairman and Chief Executive Officer of United Chemical Company (UCC), said, “This agreement with Grace will accelerate the development of Kazakhstan’s downstream petrochemical sector.”

Tomorrow, Grace will host a delegation of KMG and UCC executives at Grace’s global headquarters in Columbia, Maryland for discussions and tours of R&D laboratories and the company’s Baltimore manufacturing facility.

About Grace

Built on talent, technology, and trust, Grace is a leading global supplier of catalysts and engineered materials. The company’s two industry-leading business segments—Catalysts Technologies and Materials Technologies—provide innovative products, technologies, and services that enhance the products and processes of our customers around the world. Grace employs approximately 3,700 people in over 30 countries. More information about Grace is available at

Forward-Looking Statements

This announcement contains forward-looking statements, that is, information related to future, not past, events. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. Forward-looking statements include, without limitation, expected financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; capital and other expenditures; competitive positions; growth opportunities; benefits from new technology and cost reduction initiatives; and markets for securities. For these statements, Grace claims the protections of the safe harbor for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Like other businesses, Grace is subject to risks and uncertainties that could cause its actual results to differ materially from its projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results to differ materially from those contained in the forward-looking statements include, without limitation: risks related to foreign operations, especially in emerging regions; the cost and availability of raw materials, energy and transportation; the effectiveness of its research and development and growth investments; acquisitions and divestitures of assets and businesses; developments affecting Grace’s outstanding indebtedness; developments affecting Grace's funded and unfunded pension obligations; its legal and environmental proceedings; environmental compliance costs; uncertainties related to Grace’s ability to realize the anticipated benefits of the separation transaction; the inability to establish or maintain certain business relationships and to retain key personnel; natural disasters such as storms and floods; changes in tax laws and regulations; and those additional factors set forth in Grace's most recent Annual Report on Form 10-K, quarterly report on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the Internet at Reported results should not be considered as indications of future performance. Readers are cautioned not to place undue reliance on Grace's projections and forward-looking statements, which speak only as of the dates those projections and statements are made. Grace undertakes no obligation to release publicly any revision to the projections and forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.

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Source: W. R. Grace & Co.