MG Industries Purchases Liquid Carbon Dioxide Production

5 October 1998

MG Industries Purchases Pine Bend, MN Liquid Carbon Dioxide Production From Koch Carbon Dioxide, a Division of Koch Sulfur Products Company

    MALVERN, Pa.--Oct. 5, 1998--MG Industries and Koch Carbon Dioxide, a division of Koch Sulfur Products Company, have signed an agreement under which MG Industries has purchased 100 per cent of Koch's Pine Bend, Minnesota liquid carbon dioxide production.
    Under this agreement, MG Industries will market the liquid carbon dioxide (CO2) formerly supplied by Koch out of its Pine Bend plant.
    "First and foremost, we intend to continue to provide excellent service to all of the existing customers," Jim Doerr, President of MG Industries, said of the agreement. "We are always looking to partner with other superior companies as customers, suppliers and co-venturers. It's part of our long-range plan to grow and to serve industrial gas customers across the U.S. and Canada. In some cases we'll grow internally, sometimes by acquisition; in others, by joint ventures. The agreement with Koch Carbon Dioxide is an excellent example of the type of growth that we're interested in."
    "We are excited about this new arrangement to supply Koch's liquid carbon dioxide to MG Industries. MG has demonstrated a strong commitment to this industry and developed the key capabilities for delivering superior value to CO2 consumers," said Scot Shoup, Vice President of Koch Carbon Dioxide. "This will increase value in the upper Midwest market by combining high quality production with efficient 24 hour service and improved customer support through additional services."
    MG Industries and Koch have developed a supply agreement that will continue to provide the advantages that Koch has long furnished its customers, such as quality Pine Bend production; personalized, professional customer service; and timely delivery.
    In addition, the agreement will allow MG Industries to offer several new features:

-- Service by a major, world-wide industrial gas-producer -- Engineering assistance through a dedicated Application Engineer -- 24 hour a day service, 365 days per year dispatch capability -- Availability of CO2 tanks and application equipment for lease or
    purchase
-- Additional production in Iowa, Mississippi and Texas and a fleet
    of CO2 railcars for enhanced reliability and flexibility
-- Availability of an extensive range of industrial gas products and
    services including nitrogen, oxygen, argon, hydrogen, helium and
    ozone

    MG Industries, with headquarters in Malvern supplies industrial and process gases and the technology to use these gases effectively, serving customers across the U.S. and Canada through a network of strategically placed production and distribution sites.
    With 1997 sales in excess of $330 MM, MG Industries employs over 1,400 people in the United States and Canada and operates over 70 production plants and facilities.
    MG Industries is a member of the Messer Group, a global leader in industrial gases, with more than $1.6 billion in sales. With over 160 companies and over 14,500 employees, the Messer Group operates in over 60 countries. Messer provides an extensive resource base from which MG Industries can draw. Messer is a member of the Hoechst Group of companies.
    As a company, MG Industries is dedicated to providing excellent value for the dollars its customers spend. MG Industries strives to be a different kind of supplier, with a flat organizational structure to make the decisions customers need quickly and act on them with similar speed.
    For additional information about MG Industries, see the MG Industries home page at www.mgindustries.com.
    Koch Sulfur Products Company is a subsidiary of Wichita, Kansas-based Koch Industries Inc., the second largest privately held company in North America, with regard to revenue, as ranked by Forbes.
    Koch Industries and its subsidiaries employ more than 16,000 people worldwide and are involved in virtually all phases of the oil and gas industry, as well as in agriculture, chemicals, chemical technology products, energy services, asphalt products, metals and minerals services, real estate and financial investments.
    For more information on Koch, please refer to Koch's home page at www.kochind.com on the Internet.