OFFPLAN NEWS

(27.06.2007 )
Austrian real estate Billion-euro Austrian investment in Bavaria

MUNICH / BURGHAUSEN Good news for the state of Bavaria: Austrian properties OMV AG is going to invest close on euro 1.1 billion in Bavaria by the year 2010. Moreover, the OMV subsidiary Borealis intends to spend some euro 200 million on expanding its production capacity in Burghausen. This was announced in Munich today by OMV’s Deputy CEO Dr. Gerhard Roiss at a joint press conference with the Bavarian Minister of Economic Affairs, Erwin Huber. “This day marks a major milestone for Bavarian industry. The business location of Bavaria is gaining in efficiency and competitiveness, in attractiveness and locational quality. This is how we are securing and creating jobs. Our goal is, and will remain, full employment”, the Minister said with satisfaction.

“The total investment of close on euro 1.3 billion is by no means an everyday occurrence even for a top location like Bavaria. This is the biggest new corporate investment from abroad that has been made in Bavaria in the last few years”, Huber continued. The investments by OMV and Borealis were exceptional proof of how internationally competitive Bavaria’s industry was. For Huber, the major investments by OMV were a high spot in the economic cooperation between Bavaria and Austria and further evidence of the great appeal of the State of Bavaria for investors from the Alpine Republic.

And there is good reason for celebrations in the Bavarian chemical triangle. OMV is investing close on euro 640 million in developing its refinery site in Burghausen. A large proportion of the investment will go towards the development of petrochemicals, where the production capacity of the propylene and ethylene needed for the production of plastics is being augmented. This will involve further investments of euro 200 million in the neighboring plastics manufacturer Borealis. “Burghausen is growing into a highly advanced and important location for the production of polypropylene throughout Europe”, commented Huber. The OMV and Borealis projects will give the chemical triangle an enormous investment boost, bringing benefits to component suppliers and service providers in the region in particular, the Minister added.

OMV is going to invest a further euro 315 million in the BAYERNOIL refinery group and will also develop fuel station and key account business with euro 180 million. “Southern Germany and in particular Bavaria play a significant role in OMV’s growth strategy”, underlined Gerhard Roiss, Deputy CEO of OMV. “Our aim is to step up efficiency and profitability in our Bavarian companies in segments ranging from petrochemicals to refineries and marketing.” With its great market and cooperation potential, highly qualified labor force and innovative environment with excellent research facilities, Bavaria offers the optimal prerequisites - even when compared with its international competitors.

The head office of the OMV Aktiengesellschaft is in Vienna. With group sales of euro 15.6 billion and close on 5,200 employees, it is the largest publicly quoted industrial company in Austria and the leading mineral oil and natural gas company in Central Europe. OMV Deutschland GmbH with its head office in the Upper Bavarian town of Burghausen generated sales of euro 4.6 billion in 2005 with a work force of approx. 600 employees. Thanks to its investment in BAYERNOIL, OMV is the biggest supplier of mineral oil in Bavaria and also the most important supplier of aviation fuel at Munich Airport. In Germany, OMV currently operates some 400 fuel stations, including 260 in Bavaria alone.

Borealis is a leading worldwide supplier of innovative, high-quality plastics and has more than 40 years of experience in the production and marketing of polyethylene (PE) and polypropylene (PP). The main activities of the Vienna-based Group are centered in Europe (Belgium, Germany, Austria, Scandinavia) as well as in the Middle East and Asia. OMV has a 35 % interest in Borealis AG, while 65 % of the stock is held by the International Petroleum Investment Company (IPIC) from Abu Dhabi. In 2005, the Borealis Group generated sales of around euro five billion with a staff of 4,500. Borealis currently has 140 employees in Burghausen.

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