The state-controlled Egyptian General Petroleum Corporation (EGPC) has managed to obtain a 10 percent of the shares in the Saudi-Egyptian Petrochemical Company (SEPCO), following the signing of a memorandum of understanding by EGPC's chairman, Muhammad Tawila, and SEPCO’s chairman, Ahmed M. Badeeb.
When it goes into production in 2003. the Saudi-Egyptian Petrochemical Company will be the largest polyester production complex in the region, with a production capacity of 300,000 tons per year. The facility represents a total investment of $550, with EGPC investing $22 million in order to establish its 10 percent share.
The MOU was facilitated by Sigma Capital, a Middle Eastern financial house.
One area where the SEPCO factory is expected to have its greatest impact is the textile sector, which will be able to reduce its reliance on foreign imports. The textile sector employs about one-third of Egypt’s labor force.
The deal includes EGPC's supplying gas on a long-term basis to SEPCO, making the complex fully autonomous in terms of its energy requirements.
When SEPCO goes on line during first quarter of 2003, it will have a production capacity of 150,000 tons per year of Partially Oriented Yarn (POY),textile chips, 50,000 tons per year of staple fibers used as cotton blend and wool for textile manufacture, and 100,000 tons per year of polyester resin, which is earmarked for the packaging industry.
SEPCO is expected to generate average annual sales of $400 million and profits of $80 million. – (MENA Report)
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