Egypt is finalising loans for the Phase 1 of a multi-phase silicon production complex in New Alamein City on the Mediterranean coast, according to project data released by the Egyptian Petrochemicals Holding Company (ECHEM).

Alamein for Silicon Products Company (ASP) is implementing the project, with the Engineering, Procurement and Construction (EPC) contract for the first phase already signed and debt financing arrangements under finalisation, ECHEM said.

The EPC contract was awarded to China Tianchen Engineering Corporation (TCC), a subsidiary of China National Chemical Engineering Company (CNCEC), as part of a broader package of contracts totalling $1 billion for soda ash and bioethanol signed in July last year.

ECHEM said major permits and regulatory approvals are being obtained for the project, which will be developed on ECHEM-owned industrial land in New Alamein City Industrial Zone, with first phase startup planned for the fourth quarter of 2027.

The project has been granted the Golden License by the Egyptian Cabinet to fast track its implementation.

National Bank of Egypt (NBE) is the financial advisor.

The complex will be developed in several phases to create an integrated value chain covering metallic silicon, polysilicon and downstream silicon products in order to capitalise on Egypt’s reserves of ultra-high purity quartz and maximise domestic value creation rather than exporting raw materials.

Phase 1 will focus on metallic silicon, which is a critical input for solar, electronics and advanced manufacturing.

Planned capacities include:

·45,000 tonnes per annum of metallurgical silicon in the first phase

·60,000–100,000 tonnes per annum of silicon monomer in the second phase

·10,000 tonnes per annum of polysilicon in the third phase

·Development of a silicones downstream complex in the fourth phase

In January 2026, ASP signed a $140 million syndicated long‑term loan facility with a consortium of banks including Qatar National Bank, Commercial International Bank and Banque du Caire to finance the initial phase of the complex. Baker McKenzie Cairo has acted as the lenders’ legal counsel.

The estimated investment cost for Phase 1 is $172 million while Phases 2 and 3 are estimated to cost $300 million each, according to ECHEM’s website. 

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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