Kvaerner Awarded Expansion Project

Kvaerner announced that it has signed a contract valued at approximately EUR 15 million with Teijin Twaron, one of the world's largest producers of high performance fibres. The project entails the engineering, procurement and construction management services for a major capacity increase of Teijin Twaron's spinning facilities at Emmen, in The Netherlands, representing an investment of $88 million. The project will increase Teijin's annual Twaron® production in The Netherlands by 7,500 metric tons, to a total of 18,500 metric tons. The overall project also involves the production increase of monomers and polymers in Delfzijl, which, together with the spinning facilities in Emmen, takes the total investment by Teijin in The Netherlands to approximately $176 million. Kvaerner has already been involved in the project since early 2001, assisting in the finalising of the basic engineering together with a joint team of Teijin Twaron, Akzo Engineering and Kvaerner engineers. The fast-track project is scheduled for full completion in April 2003, and will be executed from Kvaerner E&C's operations in Zoetermeer, The Netherlands. Activities on the construction site have already commenced to ensure the challenging schedule is achieved. The award of this project to Kvaerner once again underlines Kvaerner's leading position in the European market and the confidence of Teijin Twaron in Kvaerner to execute this important project.