AIN SOOKHNA, EGYPT (July 15, 1:15 p.m. ET) — Following months of delays due to civil unrest, construction is in full swing for Egypt's first PET plant, one that is expected to bolster Egypt's economy by satisfying indigenous demand, as well as supplying exports.
Joint venture Egyptian Indian Polyester (EIPET) saw its foundation stone laid June 23 in Ain Sokhna, in Egypt's northern Red Sea region, Nitin Puranik, managing director and CEO of the new company told European Plastics News.
Set to begin production in December 2012, the facility will produce 420,000 metric metric tons of PET each year, of which only 20 percent will be required for local manufacturing, Puranik said. The rest would be exported to markets in Europe and America, which would shorten delivery time and lower freight costs, according to a communiqué from controlling Indian partner Dhunseri Petrochem & Tea Ltd.
Puranik stressed that exports would fuel Egypt's economy, which has been ailing in wake of January's revolution.
“Apart from 500 direct and indirect employment, many employment opportunities will be created in the downstream industries,” he said. “As the PET resin is currently imported by all bottle manufactures in Egypt, once this raw material is available indigenously it will give a big boost to the bottle manufacturing industry in Egypt.”
Dhunseri Petrochem & Tea Ltd. will own 70 percent of the project, while Egyptian agencies, Egyptian Petrochemical Holding Co. and Engineering for Process & Petroleum Industry own 23 percent and 7 percent, respectively.