Dear Mrs Ghosson

Our main concern is the registration of Xella at the Kuwait Stock Exchange. The registration process has not been completed since November although all documents have been provided by us in time. We are very concerned as to when the registration will be completed. You will kindly recall that the registration was a precondition for further dealings between us.
Our experience in the past on similar projects has been that the ‘as-built’ situation sometimes differs from the drawings. This happens due to constraints on the site which were not foreseen while preparing the drawings and the drawings were not updated. These differences can lead to major complications during erection. Therefore, two of our engineers will visit the site in Taiwan next week to check the actual as-built situation against the drawings supplied by them.
We had some misunderstanding with our contractual partner in Taiwan and had to postpone this site visit several times. Despite confirming to us that all required drawings have been sent it is only now that the drawings are adequate for preparation of final drawings.
The general layout, equipment arrangement drawings and floor plans are 90% ready. If our engineers find the as-built situation to be very close to the drawings, and no major alterations are required we shall be able to send the drawings by the 9th December, 2005. If changes are required we shall send the drawings a couple of days later.
During their visit to Taiwan our engineers will also discuss, in detail, the dismantling of the equipment and its transport to Kuwait. Thereafter the dismantling program will be executed jointly with our contractual partner on site. The goal, of course, is to adhere to the scheduled key dates for delivery.
We are very sorry for the situation which has arisen due to factors totally beyond our control and assure you that we will make all efforts to ensure that the project schedule remains unchanged.
Best regards
Olaf Michelswirth
Deputy General Manager
Intercem Engineering GmbH
59302 Oelde
Tel. 0049 2522 920 58 14
Fax. 0049 2522 920 58 20
Mobile 0049 170 73 41 275