The board of Oil Refineries Ltd. (TASE:ORL) has decided to build a hydrocracker with a 25,000-barrel a day capacity at a cost of $670 million. The hydrocracker will produce interim refined products (diesel and kerosene), and is due to begin operations in 2011.
Oil Refineries' board previously approved $37 million of the necessary investment in November 2007. The board ordered the company's management to conclude an agreement with the Export Credit Agency to obtain financing for the purchase of equipment for the hydrocracker from foreign vendors, and to obtain long-term credit for the project from various sources.
Oil Refineries noted that the hydrocracker will greatly boost the capacity of its Haifa refinery, enabling it to produce more high added value refined products per barrel of crude oil. The hydrocracker will also improve the company's flexibility in selecting raw materials and product mix to meet changing market conditions.
Oil Refineries chairman Yossi Rosen said, "The hydrocracker will comply with strict environmental standards. It is part of Oil Refineries' strategic plan to preserve the environment, while enabling the company to offer very clean and environmentally friendly products."
Ofer Holdings Group subsidiary Israel Corp. (TASE: ILCO) owns the controlling interest in Oil Refineries.
Oil Refineries' share rose 0.6% in morning trading today.
Published by Globes [online], Israel business news - www.globes-online.com - on October 15, 2008
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