SembCorp Utilities signs 20-year contract with Lucite International for the supply of utilities and services

February 1, 2007

SembCorp Utilities’ (SembUtilities) standing as a utilities supplier of choice on Jurong Island has been given a resounding vote of confidence with the award of a prestigious new long-term contract by Lucite International.

The chemical company has awarded SembUtilities a 20-year contract for the supply of a broad package of utilities and services to its upcoming cutting-edge Methyl Methacrylate (MMA) manufacturing facility in Jurong Island.

A customer of SembUtilities in the UK since 2003, Lucite International has now extended its existing successful partnership with SembUtilities to Singapore.

This new contract evidences SembUtilities’ solid operational track record amongst petrochemical clients in Singapore and internationally, as well as its ability to provide comprehensive bundled services as a support backbone for even the most advanced chemical facilities.

Maximising the value and convenience offered by SembUtilities’ unique one-stop service offering to Jurong Island customers, Lucite International will engage the broadest range of centralised utilities and services taken up by any single SembUtilities customer in Singapore.

It has engaged SembUtilities to provide a range of 15 utilities and services, under a Utilities Services Agreement for a period of 20 years. These include, amongst others, steam, process water, compressed air, chilled water, closed loop cooling water and industrial wastewater treatment.

In addition, Lucite International has signed an Offtake Agreement with SembCorp Gas, as well as a Supply Agreement with SembCorp Power, for the supply of natural gas and electricity.

Including this contract, SembUtilities’ Singapore operations have secured $68 million per annum worth of contracts in 2006.

Lucite International’s Vice President for European Region and Technology, Neil Sayers, commented, “SembUtilities was selected because of their successful track record in supplying the chemical industry in Jurong Island and their flexibility in developing a package suitable to support a ‘First in Class Plant’. Lucite International already has a strong relationship with SembUtilities in the UK and we are happy to build on that success in Singapore.”

Said Francis Gomez, Executive Vice President of SembUtilities, “We welcome Lucite International as a key addition to our stable of long-term customers on Jurong Island. For over a decade, SembUtilities has had proven success in offering Jurong Island customers an original, complete and integrated mix of reliable solutions to support a diverse range of industries. We will leverage on this tradition of high quality and consistency in serving Lucite International.”

Tang Kin Fei, Group President & CEO of SembCorp Industries (SembCorp), added, “We are delighted to be selected by Lucite International as its utilities and services partner in Singapore. The comprehensiveness of utilities and services involved underscores SembUtilities’ position as a leading utilities provider to international chemical manufacturers and a partner of choice with our customers. We look forward to a long and fruitful partnership with Lucite International.”

SembUtilities expects this project to contribute positively to earnings once the contract is in operation in 2008. The contract is not expected to have a material impact on SembCorp’s earnings per share and net tangible asset per share for the financial year ending December 31, 2007.