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December 02, 1996 01:00 AM

PHILLIPS, EGYPTIAN FIRM TO BUILD HDPE FACILITY

PLASTICS NEWS REPORT
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    BARTLESVILLE, OKLA. — Phillips Petroleum Co. of Bartlesville announced Nov. 14 it signed a letter of intent with Egyptian General Petroleum Co. to build and operate a facility near Alexandria, Egypt, that will make 330 million pounds of high density polyethylene a year. Construction could begin in 1998, and production could start in 2000.

    The companies said they now are beginning to negotiate definitive agreements for the facility. The cost of the project was not disclosed.

    Phillips said in a news release that it will be the majority owner and will operate the facility.

    The plant will use feedstock from an ethylene cracker that is to be built by a subsidiary of Egyptian General Petroleum at the same site, Phillips said. It will use Phillips' proprietary PE production technology.

    The facility will be Phillips' first petrochemical project in Egypt. Phillips said the facility will alleviate the need for PE imports into Egypt.

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