ZRX Zirax

RNS Number:5779N
Zirax PLC
11 December 2006



        Zirax plc announces update on facilities and capacity expansion


Zirax plc ("Zirax" or "the Company"), the speciality chemical company focused on
the development, production and sale of calcium chloride ("CaCl2"), is pleased
to announce an update on the expansion of its manufacturing facilities and
increases in the supplies of CaCl2 and IceMelt pellets.

The $5m expansion of the Company's manufacturing facility in Volgograd, Russia,
which commenced upgrade in April 2006, has to date increased Zirax's supply
capacity by a further 20,000 Metric Tonnes (MT) per annum to 100,000 MT per
annum. The Company remains confident of reaching its target capacity of 115,000
MT by the end of Q1 2007.

Among the improvements, are significant automation and the addition of a
filtration plant on its Volgograd site to cut liquid emissions from the
manufacturing facility by recycling the filtered waste to make further CaCl2
pellets. Upon completion of the expansion, Zirax expects to have not only
increased its capacity, but also to have reduced production costs.

The Company also announces today that construction has started at Solvay's new
CaCl2 plant in Rosignano, Italy. Zirax signed a supply and licensing agreement
in June 2006 with the international chemical and pharmaceutical group. Under
this agreement, Solvay will develop the plant, and Zirax will acquire two-thirds
of all production. Zirax still expect the plant to be completed by late 2007,
which will enable Zirax to meet the growing demand from nearby African and
Middle Eastern markets for CaCl2 pellets.

Commenting on this announcement, Valery Andosov, Chief Executive of Zirax said:
"I am delighted with the progress being made in upgrading our Volgograd facility
and am pleased with the progress that both Solvay and Zirax are making to
develop the plant in Rosignano, Italy. I am confident that Zirax is on track to
increase total production of calcium chloride pellets by 100% by the end of
2007.


About Zirax

Zirax is a speciality chemical company manufacturing and supplying oilfield
process chemicals and de-icing solutions to a global customer base. Zirax is
quoted on the AIM market of the London Stock Exchange (ticker: ZRX), is
headquartered in London and has a manufacturing facility in Volgograd, Southern
Russia. More information is available at www.zirax.com.

                                      Ends


Enquiries:

Zirax            Valery Andosov, CEO           T: +7 (495) 730 9559
                 Fenlon Dunphy, CFO            T: +44 (0)20 7868 1694
Cardew Group     Tim Robertson                 T: +44 (0)20 7930 0777
                 David Roach




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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