The Egyptian government is eyeing the construction of small and medium petrochemical plants, which is estimated to cost around USD 2 billion, over a land area of 150 acres, a senior official told Zawya.
Alaa Omar, governorate investments official at Egypt's General Authority for Investment (GAFI), said the proposed complexes will be constructed in three phases and will house280 plants. When completed, the facilities will have a total output capacity of approximately 450,000 tons of petrochemicals per year.
He added that the project aims to enhance the added value of petrochemical products manufactured in Egypt. By establishing a cluster of small and medium facilities, the complex will be able to have dedicated sections that will produce high-quality end products at competitive prices for industries such as plastic filling and packaging, buildings and construction, as well as automotive feeding.
"The Egyptian PetroChemicals Holding Company [ECHEM] has proposed the construction of the projects in the cities of Metoubes in the governorate of Kafr El Sheikh and Ras Ghareb in the Red Sea governorate, as well as the capital cities of the Ismailia, Sohag and Beni Suef governorates. The company has also conducted and submitted various relevant feasibility studies to the GAFI, in order to determine the possibility of offering the project to investors. The first plant is expected to begin operation in 2015, by then all three phases of the project would have been completed," Omar explained.
According to a previous study by the Egyptian ministry of petroleum, had highlighted the government's aim to establish comprehensive petrochemical industrial clusters, to be feed by raw materials produced by current and anticipated industrial projects. The anticipated industrial clusters would accommodate around 2,300 plants, and would require a total investment exceeding USD 3 billion, but will be crucial in generating over 15,000 new jobs.
This is part of an extensive national petrochemicals plan, which had been drafted by the Egyptian government a few years ago, which puts prime focus on the industry's economic potential. According to the national plan, Egypt seeks to build 14 petrochemicals clusters as part of 24 large projects. These projects will have 50 production units at a total investment cost of approximately USD 20 billion, and will be responsible for the production of 15 million tons of intermediate and finished petrochemical products per year.
The possible economic contribution of this plan was estimated to be considerable at an expected annual income USD 15 billion. Aside from stimulating exports and minimizing reliance on imports of petrochemical goods, the projects will also generate over 100,000 direct and indirect employment opportunities, according to the ministry of petroleum.
© Zawya 2013
