Oil Refineries Announces New Organizational Structure

HAIFA, Israel, March 1, 2012 /PRNewswire/ --

Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter "the Company,""ORL"), Israel's largest integrated refining and petrochemical group, announced today that on February 28, 2012 it presented a new organizational structure of its operations and the operations of its wholly owned subsidiaries - Carmel Olefins Ltd. (CAOL), Gadiv Petrochemical Industries Ltd. and Haifa Basic Oils Ltd., whose plants are all located in the same area in the Haifa Bay.  The new organizational structure is the result of a work process that took a number of months, in which many of the Company's employees and managers participated in, and which was developed with the assistance of the Boston Consulting Group, which is employed by the Company to assist it in improving its organizational structure and making the Company's work processes more efficient.

The object of this new organizational structure is to create a direct and clear connection over the whole chain of each of the main product groups of the Group, while utilizing the fact that all the Group's operations (excluding the operations of CAOL's subsidiary which is located in Holland) are carried out at one site and enable - in many fields - an increased synergy of operating efficiency and a reduction in costs.

According to the new organizational structure, the Group will have three business units: The Fuels Business Unit, the Polyolefins Business Unit and the Aromatics, Oil and Waxes Business Unit.  Every business unit will include the relevant production units, the marketing and sales functions of its additional products, and other functions.

Operational Shared Services Unit will serve the business units including maintenance, energy and infrastructures, process engineering, and supply chain services (engagements with contractors and suppliers, warehouses, etc).  The shared services are intended to reduce the duplication existing today and to give an efficient and less costly response to the needs of the business units.

Along with the operation of the business units, a Total Optimization Unit will determine the production functions in order to maximize the value of the production chain for the whole Group.  The crude oil and feedstocks required for the Group's operations, purchased from different suppliers, will be acquired by the Trading and Supply Unit

The Headquarter services will continue to be centrally provided to all the business units and the other units in the Group.

The following is the new organizational chart which will be implemented starting March, 11, 2012:

                                             CEO
                                     Pinchas Bochris
                                                          Aromatic,
                                                          Oils and
                                    Fuels    Polyolefins     Wax       Operations
                      Trading      Business   Business     Business      Shared
    Optimization     and Supply     Unit       Unit         Unit        Services
                                   Avraham    Charles       Ronen        Sharon
    Pninit Lavi       Roy Sela     Ovadia     Liran       Chitterer       Zaid
                                                                         Strategy
                                             Safety,                       and
     Finance &        Human               Environment     Projects,       Business
        IT          Resources      Legal   & Security    Technology    Development
 
       Yigal         Hayyim       Michal      Shlomo        Gad         Yitzhak Ben
      Salhov         Serour       Minzer      Basson     Mendelsohn       Moshe

About Oil Refineries Ltd.

Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, operates Israel's largest integrated refining and petrochemical group. It is one of the leading refineries in the Eastern Mediterranean area and integrates, on-site, petrochemical businesses. ORL runs sophisticated and state-of-the-art industrial facilities with a refining capacity of 9.8 million tons of crude oil per year and a Nelson Complexity Index of 7.4, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. Besides production of fuels, the company produces in its wholly owned subsidiaries Polymers (through Carmel Olefins Ltd), Aromatics (through Gadiv Petrochemical Industries Ltd), and Lube-Oils (through Haifa Basic Oils Ltd). The Company's shares are listed on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit http://www.orl.co.il.

ORL is controlled by the Israel Corporation Ltd. and Israel Petrochemical Enterprises Ltd., both public companies whose shares are traded on the Tel Aviv Stock Exchange.

The above noted in this release includes forward-looking statements based on Company data, as well as Company plans and estimations based on this data. The activity, results and other data may be substantially different in reality given uncertainty and various risks, including those discussed under risk factors in the Company's financial statements and Director's reports

    
    Company Contact:
    Rony Solonicof
    Chief Economist and Head of
    Investor Relations
    Tel. +972-4-878-8152
    Contact [email protected] 
 
    Investor Relations Contact:
    Ehud Helft / Porat Saar
    CCG Israel
    Tel. (US) +1-646-233-2161 / (Int.) +972-52-776-3687
    [email protected]

SOURCE Oil Refineries Ltd