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TCI Sanmar Chemicals, a 100 percent subsidiary of India’s The Sanmar Group, is planning to increase its investments in the Egyptian market in the next two years.
The company has so far invested around $1.50 billion in creating the biggest production capacities in the Middle East and North Africa (MENA) region for Caustic Soda (275,000 Tonnes Per Annum) Poly Vinyl Chloride (400,000 TPA) and Calcium Chloride Granules (135,000 TPA) and Green Ethylene (60,000 TPA) in Port Said, according to the company’s website.
“We plan to invest $400 million in Egypt up to end-2024,” said V Sunder, Deputy CEO of TCI Sanmar Chemicals in an interview with Zawya Projects on the side lines of ‘Plastex’ event in Cairo.
He said that the company is planning to set up a 125-megawatt power plant to serve the plant and provide multiple evaporation, an integral element in the production of caustic soda, at an investment of about $150 million.
“The project is planned to be built over a period of 18 to 24 months, and among the companies interested in implementing the project are Germany's Siemens, Egypt’s El Sewedy, and others,” he disclosed.
Sunder said the company is also planning to set up a loading station in El-Gamil area of Port Said with an initial investment of $250 million to receive ethylene and export its products.
“We plan to use both self-financing and banks for financing the project and all options are open,” he said.
The official said TCI Sanmar has set a target to increase its sales by 20 percent during the next fiscal year, which begins in April 2022, and the company aims to operate its factories at maximum capacity.
“We expect to register sales in the range of $550 million to $600 million by the end of March [Fiscal year in India ends on 31 March], achieving 50 percent growth compared to the last fiscal year,” he said.
Sunder pointed out that the plant has continued to operate at almost maximum capacity to meet demand, adding that currently, 90 percent of the production is sold in the domestic market. On the export front, he said TCI Sanmar’s products reach about 60 countries, and the company aims to focus on the African market in the coming period.
TCI Sanmar is largest producer of caustic soda in Egypt and is also the largest manufacturer of Polyvinyl Chloride in the MENA region, according to its website.
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
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