Five Egyptian and Arab companies signed an agreement on Monday to set up a new petrochemicals complex in Port Said under the free zones arrangements with total investments estimated at $680 million. The new complex will be constructed on an area of 70.5 feddans.
Arab companies from the United Arab Emirates, Yemen and Libya will contribute to the project along with state-owned petroleum companies. The Holding Petrochemicals Company will contribute as much as 26 percent, while the stake of Arab investors, who include Gulf Amwal Company, is set at 48 percent of the initiative. Yemeni investors will control 15 percent and Libyans will hold a stake of 10 percent.
Investors have selected a German company to implement the petrochemicals complex project and production is due to start in the final quarter of 2009. Founders expect the complex to churn out 400,000 tons of propylene a year at a total value of $420 million and 400,000 tons of polypropylene at a total value of $520 million.
Mohammad Farid Khamis, head of the Egyptian Company for Propylene and Polypropylene production, said the project would produce value-added products using locally produced propane gas.
