Project CHIMCOMPLEX - POWER PLANT
1. Company Overview
CHIMCOMPLEX SA BORZESTI is a leading Romanian producer of chlor-alkali chemicals, with a total
chlorine production capacity of 100,000 tones per year. The company has 26% of the chlor-alkali market, 66%
of the inorganic chlorides, 81% of the organic solvents and 100% of the alkyl-amine local markets.
Founded in the 1960s, the Company is member of one of the strongest industrial groups in Romania,
following its privatization in 2003. The Owners currently hold a controlling stake of more than 80%, with rest of
the shares being held by minority shareholders. Shares are listed on Bucharest stock exchange, but the free
float represents less than 5% of the market capitalization.
At the end of September 2010, CHIMCOMPLEX had a total of 668 employees and in the nine months in 2010
sales of approximately EUR 27 million, split as follows:
Figure 1: 2010 Sales Breakdown
( first 9 months )
3% 1%
26%
7%
Chlor - alkali
Organic Solvents
28%
Export Sales
Inorganic Chlorides
61%
Domestic Sales
Alkyl - amines
Other products
74%
CHIMCOMPLEX’s product range is comprised of:

Chlor-alkali: e.g. caustic soda flakes, caustic soda solution, hydrochloric acid, liquid chlorine, sodium
hypochlorite;

Organic Solvents: e.g n-methyl-pyrolidone, trichloroethylene;

Inorganic Chlorides: e.g. calcium chloride, lime chloride, ferric chloride;

Alkyl-amines (e.g. methylamines, isopropilamine) ;

Other products: compressed gases (e.g. hydrogen), synthesis intermediaries.
Project CHIMCOMPLEX - POWER PLANT
2. Financial Highlights
Table 1: Basic Financial Data
2010
EUR, thousands
2007
2008
2009
Sales
53,654
43,896
28,521
27,083
37,504
EBITDA
5,889
6,401
2,534
3,987
5,512
Total Assets
64,190
63,640
59,063
57,430
56,236
Employees
976
958
662
668
670
(first 9 months)
2010F
EUR, thousands 2007 2008 2009 2010F
CHIMCOMPLEX’s sales in 2008 and 2009 were affected by the substantial drop of chemical products
demand, which started in the second half of 2008, as result of the downturn in the automotive, constructions
and pulp&paper industries. The demand drop continued through the first half of 2009. Starting with Q3, the
chemical products market begun to improve, in both demand and price terms. During the first nine months of
2010 the average monthly sales increased to 27% from 2009, once with the rising of chemical products
demand and the prices rehabilitation. CHIMCOMPLEX’s sales in 2010 are expected to reach EUR 37,5
million (i.e. RON 157 million, approximately 32% growth vs the sales value in 2009) while the EBITDA margin
will improve as well reaching 13%. The capacity utilization rate of the main production line (chlorine-alkali)
was of approximately 58% in 2009 and is forecasted to grow towards 70% in 2010.
3. Strategical Development Directions
Strategical objectives of the company for future development are based on:

The obtained results consolidation by completion and utilization of now being accomplished
investments;

- The organization stability, which will be ensured by vertical integration of the technological flows; this
objective will be achieved through the investments in new chlorine consumers technologies;

- The long term development will be achieved through diversification of the production;
I. In the last years Chimcomplex S.A.Borzesti achieved many investments for revamping of the infrastructure
and the technologies. During the 2005 – 2009 period Chimcomplex SA
Borzesti had the following
achievements in the investments domain:
New plants

Calcium chloride flakes / pellets plant, having a designed capacity of 12000 tonnes/year

Residual sulfuric acid reconcentration plant, having a processing capacity of 3000 tonnes/year

Cogeneration power plant, designed to produce 7,5 MWh electrical power and 25,3 t/h steam
Project CHIMCOMPLEX - POWER PLANT

Organochlorinated residues incineration plant, having a processing capacity of 85 kg/h (~680 t/year)
Modernizations

Retechnologization of the electrolysers of the electrolysis plant and the replacement of the ion
exchanger membranes with new generation ones;

Chlorine liquefying plant modernization;

Methylamines plant modernization;

The nitrogen production plant modernization;

The optimization of the compressed air unit;

The modernization of the freeze plant for the chlorosodics fabrication;

The industrial wastes warehouse improvement in order to ecologize the existing warehouse.
INVESTMENTS
19290
EUR THOUSAND
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
15852
7832
7377
2365
1696
291
2003
2004
2005
2006
2007
2008
2009
II. The stability of the company will be achieved by capacities development for chlorine processing plant. In
this case we planned to increase the production capacity of following plants:

Hydrochloric acid plant, increase of the capacity with 20.000 to/year ;

Ferric chloride plant, increase of the capacity up to 10.000 to/year ;

Calcium chloride plant, increase of the capacity up to 24.000 to/year;
and to build new plants for production of polyaluminium chloride and propylenoxyde. These investments will
allow us to process 80% of chlorine production .
III.
The last company target referring to the diversification of production takes into consideration the
construction of new plants:

Maleic anhydride plant

Carbide plant

Cogeneration Power Plant with combined cycle.
In same time CHIMCOMPLEX must revamp the electrolysis plant for caustic soda and chlorine production, in
order to change the old generation of ion exchange membranes with the new ones.
For the accomplishment of these investments the company needs 50 mil EUR
Project CHIMCOMPLEX - POWER PLANT
Chimcomplex S.A.Borzesti’s targets for 2015 year are:

an annual turnover estimated to more than 200 millions EUR

- minimum 10% rate of profit.

- maximization of share’s value on the stock market.
4. Cogeneration Power Plant presentation
The above mentioned planned Cogeneration Power Plant with combined cycle is presented below.
The need of the investment
Through the nature of the technological processes, which include a plant for sodium chloride electrolysis,
Chimcomplex SA Borzesti is a significant electricity user. The current annual electricity consumption is around
350.000 MWh. In the future, once with the setting up of the installations listed in The Strategic Forecast, the
annual need of electricity will increase.
Following the growing price tendency of the electricity, came the need of generating power in our own
cogeneration plant which would be very convenient for Chimcomplex S.A. Borzesti
Investment exposure
The Cogeneration Plant with combined cycle of 40 MW can generate electricity and steam heat in the same
time. The combined cycles are part of the most advanced power generation technologies currently available
to ensure an efficient, reliable and economical energy with la low environmental impact.
The fuel used in the cogeneration plant would be the natural gas.
The power generated at low costs and efficient results, would be used for all the requirements of
Chimcomplex, and the eventual overbalance production shall be traded on the energy market.
The annual schedule would be around 8400 hours.
The investment opportunities
Trough this investment objective is expected:
- the company achieve of power energy independence;
- the reduction with at least 10% by the electric energy costs of the company, which would also decrease the
costs of every manufactured product

the possibility of setting new investments once with the existence of the heat energy fund
(eg. re-
concentrating of the brine waste, which is a result of the electrolysis process, re-crystallization of the sodium
chloride etc.).
Project CHIMCOMPLEX - POWER PLANT
5. Partnership development
We are very interested in developing a business relationship with your company on the field of investments.
We can reach this objective through a strong partner which will help us finding the best forms of cooperation.
The foundation of a partnership with CHIMCOMPLEX will benefit from the following resources and strategic
advantages:
- a fully developed industrial site on a 180 ha industrial platform and its proximity to raw materials (brine,
electricity, natural gas) places CHIMCOMPLEX in an enviable position, ready to tackle outside
competition. CHIMCOMPLEX has its own railway connection and infrastructure, brine pipeline
connecting the plant with the main supplier and facilities for storage and loading of petrochemicals in
Constanta Black-Sea harbor;
- the position of a sole Romanian producer for a number of products that allow a good capitalization
policy;
- tradition and the stability of the company involved in the chemical business since 1950;
- CHIMCOMPLEX is environmental friendly producer; its operations are soil and water pollution free. The
plant is under constant monitoring by local and international authorities and until now no major breaches
or incidents were reported;
- the CHIMCOMPLEX ground area is around 180 ha, so there is place enough to build new plants.
All these advantages together with the CHIMCOMPLEX management team experience will offer to our future
partners a strong support for investments.
We would be honored if you would consider our proposal of cooperation.
Contact Information
Potential Investors interested in receiving additional material containing more detailed information on the
CHIMCOMPLEX Company are invited to contact the following persons:
Chairman of the board: Dr.Eng. Virgiliu BANCILA, tel. +40-234-302000, e-mail: bancila@aisa.ro
Investments Manager: Eng. Ionita MANEA, tel. +40-234-302300, e-mail: manea@aisa.ro
CHIMCOMPLEX SA BORZESTI – ROMANIA
3, Industriilor st., Onesti 601124, Bacau County
fax +40-234-302002
www.chimcomplex.ro