Egypt Invests $8 billion in New Petrochemical Projects

 Egypt's petrochemical industry is witnessing a qualitative leap through a number of new projects that aim to provide the local market with petrochemical products on which many complementary industries are based.

The concerned companies plan to export a surplus of these products to support the national economy.

These are the most important projects that are being implemented with a total investment of about $8 billion. These projects include the establishment of MDF factories (WOTECH Wood Technology Company).

The project aims to produce 205 thousand cubic meters annually of MDF based on  245 thousand tons annually of Egyptian rice straw as raw material, with investments of 217 million euros.

The general plan includes constructing a new plant for the production of methanol derivatives (Suez Company for Methanol Derivatives) is also being set up.

The project aims to produce 87 thousand tons per year of urea formaldehyde and 52 thousand tons per year of sulfonated naphthalene formaldehyde (SNF), depending on the methanol and urea producers produced by Emthanex and MOPCO, with investments of $119 million.

The state’s plan also includes the establishment of the Red Sea Petrochemical Complex project in the economic zone of the Suez Canal.

The project-based on about 4 million tons of imported crude oil, to produce about 2.7 million tons per year of petrochemical products and 1.2 million tons per year of petroleum products, with investments of about 7.5 billion dollars.

The foundation stone of the project was laid on June 5, 2021.

A new unit will also be established in Ethydco Company, with investments exceeding $50 million, to produce 60,000 tons annually of colored high and medium density polyethylene used in the manufacture of gas, water, and high-pressure pipeline networks, sewage, and industrial networks, and in infrastructure and reconstruction projects within the major national projects.

A shareholder agreement was also signed to establish the “Misr Methanol and Petrochemicals Company” for the production of methanol, ammonia, petrochemicals, and others between Abu Qir Fertilizers and Chemical Industries Company, Helwan Fertilizers Company, and Al Ahly Capital Holding Company.

The first project costs about $ 1.6 billion dollars and has a production capacity of one million tons of methanol and 400 thousand tons of ammonia annually.

It is planned to establish the project in the Suez Canal Economic Zone in Ain Sukhna, which gives the project a competitive advantage due to the many economic advantages granted by the General Authority for the Economic Zone of the Suez Canal to encourage and attract investments.