Cairo – Mubasher: Sidi Kerir Petrochemicals (Sidpec) has signed a licensing agreement with the US-based Honeywell UOP to set up a new polypropylene plant at Sidpec’s complex in Alexandria.
The agreement was signed by Sidpec’s chairman Mohamed Abadi and Honeywell UOP's Middle East general manager James Moshi.
This comes as a part of the company’s project to boost the production capacity of the complex to of 500,000 tonnes of propylene per annum and 450,000 tonnes of polypropylene per annum with around $1.2 billion in investments, Egyptian petroleum minister said in a statement.
The new propylene and polypropylene production project represents integration between oil firms in terms of maximising the added value of propane, which is being produced at Egyptian Natural Gas Company’s (GASCO) Western Desert complex, petroleum minister Tarek El-Molla said.
He added that the power station at the Egyptian Ethylene’s complex properly feed-in the project as the related contracts were signed earlier this year.
Sidpec is projected to sign the licensing agreement of the polypropylene plant in the coming period, the minister highlighted.
The ministry’s strategy aims to boost the production capacity of the Egyptian petrochemical industries and benefit from its products domestically, El-Molla indicated.
Earlier this month, the ministry announced that Sidpec will sign a licensing agreement with GRACE company to begin the production of polypropylene project in early 2022.