{"id":662827,"date":"2025-03-23T00:00:00","date_gmt":"2025-03-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/the-lowdown-on-the-states-plan-to-develop-the-petrochemicals-industry\/"},"modified":"2025-03-23T00:00:00","modified_gmt":"2025-03-23T00:00:00","slug":"the-lowdown-on-the-states-plan-to-develop-the-petrochemicals-industry","status":"publish","type":"inside_industry","link":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/the-lowdown-on-the-states-plan-to-develop-the-petrochemicals-industry\/","title":{"rendered":"The lowdown on the state\u2019s plan to develop the petrochemicals industry"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Gov\u2019t is using the petrochemicals industry to fuel its industrial localization plans:<\/strong> The state is moving ahead with a multi-bn USD roadmap to develop the country\u2019s petrochemical industry in a bid to lower the import bill for intermediate industrial products, make the most of oil and gas resources, and boost exports. As part of the plan, the government is working to add <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02e7BkCbt5Ls3b7MyKQm9NhyTUbYdU9h7biyFsixFUYH2Vz6bSLUscBUEZNaxa5tAel\" style=\"\" rel=\"noopener\">7 m<\/a><a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02e7BkCbt5Ls3b7MyKQm9NhyTUbYdU9h7biyFsixFUYH2Vz6bSLUscBUEZNaxa5tAel\" style=\"\" rel=\"noopener\">n<\/a><a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02e7BkCbt5Ls3b7MyKQm9NhyTUbYdU9h7biyFsixFUYH2Vz6bSLUscBUEZNaxa5tAel\" style=\"\" rel=\"noopener\">tons<\/a> to the industry\u2019s current production capacity of 4.5 mn tons across 10 new projects, leveraging the industry to turbocharge the state\u2019s localization drive. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>(Tap or click the headline above to read this story with all of the links <\/strong>to external sources.)<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A sweeping glance of the projects: <\/strong>The 10 industrial projects will be spearheaded by the Egyptian Petrochemicals Holding Company (ECHEM), chairman Ibrahim Mekki told EnterprisePM. The projects will localize the production of 20 industrial products currently imported by Egypt, with projected export revenues of over USD 8 bn, Mekki said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A closer look: <\/strong>Here\u2019s the rundown of the projects, which the government is working on in collaboration with local and international partners:<\/p>\n<ul>\n<li><strong>Ramping up capacity at existing industrial complexes<\/strong>, such as those run by Misr Fertilizer Production Company (Mopco), Egyptian Linear Alkyl Benzene (Elab) and ECHEM. <\/li>\n<\/ul>\n<ul>\n<li><strong>A<\/strong><strong> c. USD 900 mn <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/83a8a376-50ec-4261-871d-09eab5b57b6c\/more-international-players-are-interested-in-damietta%e2%80%99s-green-ammonia-project\" style=\"\" rel=\"noopener\">green ammonia project<\/a><\/strong><strong> in Damietta<\/strong> involving Belgium engineering group John Cockerill, Norwegian firms Scatec, Yara International, ECHEM, and Mopco. The parties will produce around 150k tons of green ammonia annually in Mopco\u2019s factories.<\/li>\n<li><strong>A<font face=\"Arial\">&nbsp;<\/font><\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c849562a-fe0a-4834-bd58-a70afd76a754\/egypt-could-start-producing-sustainable-aviation-fuel-in-2025\" style=\"\" rel=\"noopener\">sustainable aviation fuel production facility<\/a><\/strong> in Alexandria by US conglomerate Honeywell that\u2019s slated to produce 120k tons annually in its first phase before doubling production in phase two to 240k tons.<\/li>\n<li><strong>A&nbsp;<\/strong><strong>formaldehyde<\/strong><strong> project <\/strong>by Suez Methanol Derivatives that will produce an annual 87k tons of formaldehyde and 53k tons of sulfonated naphthalene formaldehyde. The project, which will enter production this year, will use methanol produced by Methanex, urea produced by Mopco, and caustic soda produced by ECHEM, supplying essential materials for the furniture and wood panel industries.<\/li>\n<li><strong>A&nbsp;<\/strong><strong>bioethanol<\/strong><strong> project <\/strong>that uses molasses in the production of renewable fuel that can be mixed with gasoline to reduce carbon emissions from vehicles.<\/li>\n<li><strong>A&nbsp;<\/strong><strong>silicon metal complex<\/strong><strong> in Alamein<\/strong> that is expected to produce 45k tons per year to support the manufacture of solar panels.<\/li>\n<li><strong style=\"background-color: transparent;\">A soda ash <\/strong><strong style=\"background-color: transparent;\"><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/aed36bed-e276-4e64-b33b-c01ef19175ea\/\" rel=\"noopener\">project<\/a><\/strong><span style=\"background-color: transparent;\"> that targets an annual output of 600k tons to supply the local glass and detergent industries.<\/span><\/li>\n<li><strong>A&nbsp;<\/strong><strong>petrochemicals<\/strong><strong> complex<\/strong> in the Suez Canal Economic Zone with an annual production capacity of 4 mn tons. Feasibility studies are complete.<\/li>\n<li><strong>A&nbsp;<\/strong><strong>wood panel project<\/strong> that uses rice straw. The project is currently in its pilot phase and set to begin commercial operations within months, promising to cut emissions by 360k tons annually.<\/li>\n<li><strong>A USD 660 mn project<\/strong> that will see Alexandria Supply Chain Company build, operate, and maintain&nbsp;<a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/66f6e3b0-7788-4db8-8bec-c8da682c4c8e\/efg-finance-will-offload-stake-in-paytabs\" style=\"\" rel=\"noopener\">liquid and gas bulk facilities<\/a> at Dekheila Port, supporting ethane imports.<\/li>\n<\/ul>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The projects carry significant economic potential: <\/strong>The new projects are expected to raise the petrochemical sector's contribution to the country's GDP to 7.5% by 2030, from just 3% at the end of 2024, Mekki explained, noting that eight of the projects alone could turn USD 1.2 bn worth of feedstock into high-value output worth over USD 3 bn. Petrochemicals fuel a broad range of industries \u2014 from paints, rubber, plastics, and detergents to pharmaceuticals, cosmetics, fertilizers, and textiles \u2014 making the sector a vital cog in Egypt\u2019s industrial machine, said Executive Director of the Chemical and Fertilizer Export Council Mohamed Mageed.&nbsp;<span style=\"background-color: transparent;\">Egypt\u2019s petrochemical exports grew 103% y-o-y to USD 1.6 bn in 2024, Mageed said.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The plan will also support Egypt\u2019s ambitions to become a regional petrochemicals hub<\/strong>, which would expand Egypt\u2019s export base to over 50 countries, create jobs, and unlock more value from its natural gas, Chairman of the Export Council for Chemical Industries and Fertilizers Khaled Abul Makarem told us. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The government expects to see results from efforts to stimulate industrial investments <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d3fdb838-5768-4201-8be9-a6cdc8b3aa29\/\" style=\"\" rel=\"noopener\">over the next two years<\/a><\/strong>, a government official told us back in November, adding that the restructuring of the sector and the development of specialized industrial zones and services will have a big role to play in that regard.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The sector features prominently in Egypt\u2019s localization drive:<\/strong> Polyester and soda ash are amongst the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6eb8ac38-6fd7-40e3-bd04-9d4c309d0453\/\" style=\"\" rel=\"noopener\">23 industries<\/a> that the government is looking to localize by offering incentives and facilities to attract investments.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Petrochemical production costs could also take a hit from the expected <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ca410478-05e5-4422-99fb-61604a78bd07\/egypt-could-raise-fuel-prices-next-month\" style=\"\" rel=\"noopener\">cuts in energy<\/a><\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ca410478-05e5-4422-99fb-61604a78bd07\/egypt-could-raise-fuel-prices-next-month\" style=\"\" rel=\"noopener\">subsidies<\/a><\/strong>, which could hike production costs, adding to the financial challenges facing the sector. Meanwhile, incoming investments in research and exploration aren\u2019t enough to uncover new resources or boost production.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And there are other hurdles to clear: <\/strong>Limited investments in research and exploration constrain growth, while Egypt faces tough regional competition from resource-rich and experienced players like Saudi Arabia and the UAE. Abul Makarem cited infrastructure upgrades as essential to meeting growing demand, adding that global oil price swings and tightening environmental standards mean the industry must also invest in cleaner tech.<\/p>\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Your top industrial development stories for the week:<\/strong><\/p>\n<ul>\n<li><strong>China\u2019s SBH Kibing Solar New Energy plans to build a <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/78263091-c91d-4d9b-883c-81c51a8dad9d\/chinese-glass-maker-xinyi-wants-to-set-up-a-usd-700-mn-solar-panel-glass-factory-in-sczone\" style=\"\" rel=\"noopener\">USD 700 mn solar panel glass plant<\/a><\/strong> in the Suez Canal Economic Zone. The two-phase facility will produce 1.5 mn tons of solar glass and 1.1 mn tons of silica sand annually, mostly for export.<\/li>\n<li><strong>Vitabiotics\u2019 local partner Aptecure is investing <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/77d4b3d2-2654-4a1a-8dde-40bef04503a8\/fawry-got-an-islamic-financing-license-from-the-fra#:~:text=Vitabotic%E2%80%99s%20local%20partner,with%20the%20authority.\" style=\"\" rel=\"noopener\">EGP 600 mn to expand its<\/a><\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/77d4b3d2-2654-4a1a-8dde-40bef04503a8\/fawry-got-an-islamic-financing-license-from-the-fra#:~:text=Vitabotic%E2%80%99s%20local%20partner,with%20the%20authority.\" style=\"\" rel=\"noopener\">pharmaceutical production line<\/a><\/strong> in support of the government\u2019s localization strategy. The company also signaled plans to deepen cooperation with the Egyptian Drug Authority, according to a statement.<\/li>\n<li><strong>India\u2019s <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.sterlitepower.com\/\" style=\"\" rel=\"noopener\">Sterlite Power<\/a><\/strong><strong> is mulling a USD 5-6 bn electricity grid specifically <\/strong><strong>for green hydrogen projects<\/strong>. The project aims to enhance Egypt\u2019s energy infrastructure and support the country's transition toward clean energy. (<a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02nbPwwG7RLtSn6K4MrR8PSZk1AW8fxKgbj2kndB8hUpYFWd8yBQAb9YnvqzBjYiEkl\" style=\"\" rel=\"noopener\">Statement<\/a>)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The government is working to add 7 mn tons to the industry\u2019s current production capacity of 4.5 mn tons across 10 new projects<\/p>\n","protected":false},"featured_media":662828,"template":"","categories":[7334],"tags":[633,7196,7333,91],"class_list":["post-662827","inside_industry","type-inside_industry","status-publish","has-post-thumbnail","hentry","category-inside-industry","tag-enterprisepm","tag-industry","tag-inside-industry","tag-oil-and-gas","wpautop","entry"],"acf":{"mongo_id":"2bf2b3d7-cfd6-4ecb-8362-0bb580021175","order":"10","is_powered_by":false,"story_type":"2","photo_url":"https:\/\/ent.news\/2024\/8\/539.jpg","photo_position":"above","homepage_title":"","full_issue_title":"The lowdown on the state\u2019s plan to develop the petrochemicals industry","related_issue":[662811],"teaser":"The government is working to add 7 mn tons to the industry\u2019s current production capacity of 4.5 mn tons across 10 new projects","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/3\/.363269af-0aa9-4161-add9-4987e3c3e058.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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