Fitch Solutions forecasted that Egypt would lead the growth in the petrochemicals sector in Africa at the medium range due to the development of new projects that optimize the country’s upstream gas resources, noting that this sector will be crucial in handling the weak petrochemicals supply in the manufacturing sector which has witnessed a rapid growth after the 2016 currency floating.
The Fitch report was highlighted by the Cabinet’s Information and Decision Support Center (IDSC) as part of its regular follow-up of international reports that tackle the economic situation of Egypt.
The report underlined the State’s plans for a number of projects in the Suez Canal Economic Zone (SCZone), taking advantage of the country’s unique position in global trade routes to develop industries that improve national self-sufficiency, develop the country’s industrial base and provide export revenue.
Fitch also pointed out to the TCI Sanmar Chemicals, affiliated to India’s Sanmar Group, announcement of plans to invest dlrs 15 million in Egypt in 2023 to expand its production capacity for calcium chloride and polyvinyl chloride (PVC) by implementing four new production lines with a total capacity of 225,000 tonnes per year.
PVC production is expected to grow to 350,000 metric tonnes (MT) by March 2023 versus 245,000 MT achieved in 2021 with full capacity of 400,000 MT expected to be reached by the end of 2023, according to the report.
The report said Egypt produced 552,000 barrels per day of refined petrochemicals products in 2022, and the production will gradually reach up to 659,000 bpd by 2032.
Fitch also underlined the activities of the Egyptian Petrochemicals Holding company (ECHEM) which has four affiliated companies including one for producing methanol derivatives with a capacity of 110,000 tons annually that started operation in 2020 in Damietta.
It said the company has signed a construction deal worth dlrs 117 million in February, 2020, in partnership with Sun Egypt and Wadi El Nile and ZAFCOM companies.
Source: State Information Service Egypt